A trader's draft income statement showed a profit for the year of $24500.
The following errors were later discovered.
1 No adjustment had been made for accrued income of $8000.
2 Carriage inwards of $250 had been recorded as carriage outwards.
3 An increase in provision for doubtful debts of $120 had been treated as an addition to the gross profit for the year.
What was the corrected profit for the year?

Q: What topic does this question test?

This question tests Preparation of financial statements in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2024 examination, Paper 1 Variant 2 (7707_w24_qp_12.pdf).

Question

A trader's draft income statement showed a profit for the year of $24500.
The following errors were later discovered.
1 No adjustment had been made for accrued income of $8000.
2 Carriage inwards of $250 had been recorded as carriage outwards.
3 An increase in provision for doubtful debts of $120 had been treated as an addition to the gross profit for the year.
What was the corrected profit for the year?

Oracle Prep · Accepted Answer

The correct answer is B: $32 260.

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