Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

While preparing its draft final accounts for the year ended 31 July 22Y6 and its draft balance sheet as at 31 July 22Y6, VWX Ltd

While preparing its draft final accounts for the year ended 31 July 22Y6 and its draft balance sheet as at 31 July 22Y6, VWX Ltd discovered a mistake in the stock lists used to value stock as at 31 July 22Y6. The entry was:

Stock item

Number

Cost per unit

Total cost

Y123

60

£6.00

£360

Required: (a) Describe the error in this entry. (b) Determine the effects of this error on: (i) the value of stock as at 31 July 22Y6. (ii) the cost of goods sold for the year ended 31 July 22Y6. (iii) the net profit for the year ended 31 July 22Y6. (iv) the total for Current Assets as at 31 July 22Y6.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 1

Authors: Frank Wood, Alan Sangster

10th Edition

9780273681496

More Books

Students also viewed these Accounting questions