O-LevelAccountingPreparation of financial statements7707/13 · Oct/Nov 2023 · 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
C: $37000
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.
Sign up free →