A-LevelAccountingPreparation of financial statements9706/12 · May/June 2017 · Q101 Mark
A business provides the following information. year 1 $ year 2 $ profit for the year 30 000 40000 cost of goods sold 240 000 320 000 The owner then discovers that at the end of year 1 the value of inventory was overstated by $2000. What are the correct profits for the year and cost of goods sold figures?
Ayear 1 profit for the year $ 28 000 cost of goods sold $ 238 000 year 2 profit for the year $ 42000 cost of goods sold $ 322 000
Byear 1 profit for the year $ 28 000 cost of goods sold $ 242000 year 2 profit for the year $ 40000 cost of goods sold $ 320 000
Cyear 1 profit for the year $ 28000 cost of goods sold $ 242 000 year 2 profit for the year $ 42000 cost of goods sold $ 318000
Dyear 1 profit for the year $ 32000 cost of goods sold $ 238 000 year 2 profit for the year $ 38 000 cost of goods sold $ 318000
✓ Correct answer
C: year 1 profit for the year $ 28000 cost of goods sold $ 242 000 year 2 profit for the year $ 42000 cost of goods sold $ 318000
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