While preparing its draft final accounts for the year ended 31 March 22Y1 and its draft balance
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Question:
While preparing its draft final accounts for the year ended 31 March 22Y1 and its draft balance sheet as at 31 March 22Y1, GHI Corp discovered a mistake in the stock lists used to compute the stock value as at 31 March 22Y1. The entry was:
Stock item | Number | Cost per unit | Total cost |
T456 | 85 | £4.60 | £391 |
Required: (a) What is wrong with this particular entry? (b) What would the effect of the error have been on: (i) the value of stock as at 31 March 22Y1? (ii) the cost of goods sold for the year ended 31 March 22Y1? (iii) the net profit for the year ended 31 March 22Y1?
Related Book For
Frank Woods Business Accounting Volume 1
ISBN: 9780273681496
10th Edition
Authors: Frank Wood, Alan Sangster
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