O-LevelAccountingPreparation of financial statementsOct/Nov 2023Paper 1 Q111 Mark
A trader prepared a draft income statement which showed a profit for the year of $36000. A check of the books revealed the following information. 1 Drawings made by the owner of $900 had been debited to the wages account. 2 The provision for doubtful debts was increased by $20 at the year-end. The income statement was charged with the total provision of $260. 3 The total of the discount allowed column in the cash book, $140, for one month had not been debited to the discount allowed account. What was the correct profit for the year?
A$34720
B$36 520
C$37000
D$37280
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of preparation of financial statements within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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