- 1 Marks
FA – Nov 2019 – L1 – SA – Q15 – Financial Statements Preparation-
Calculate the adjusted net profit after correcting an error related to motor van expenses.
Question
Your company’s statement of profit or loss for the year ended October 31, 2019, showed a profit of N836,000. It was later discovered that N180,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate the motor van at 25% per annum on a straight-line basis, with full depreciation charged in the year of purchase.
What will be the net profit after adjusting for this error?
A. N656,100
B. N701,000
C. N791,000
D. N971,000
E. N1,016,100
Find Related Questions by Tags, levels, etc.
- Tags: Depreciation, Error Correction, Net Profit Adjustment
- Level: Level 1
- Topic: Financial Statements Preparation
- Series: NOV 2019
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