A business has calculated its draft profit for the year as $15000. The following were then discovered.

1
General expenses were understated by $600.
2
The sales journal total of $55690 had been posted to the sales account as $56 590.
3
Repairs to vehicles of $1100 had been entered in the vehicles (at cost) account.
4
The salaries account included travelling expenses of $2400 paid to the salesmen.

What was the correct profit for the year?

Q: What topic does this question test?

This question tests Errors and Suspense Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2021 examination, Paper 1 Variant 2 (9706_m21_qp_12.pdf).

Question

A business has calculated its draft profit for the year as $15000. The following were then discovered.

1
General expenses were understated by $600.
2
The sales journal total of $55690 had been posted to the sales account as $56 590.
3
Repairs to vehicles of $1100 had been entered in the vehicles (at cost) account.
4
The salaries account included travelling expenses of $2400 paid to the salesmen.

What was the correct profit for the year?

Oracle Prep · Accepted Answer

The correct answer is A: $12400.

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