A-LevelAccountingPreparation of financial statements9706/12 · May/June 2021 · Q81 Mark
A business had a draft profit for the year of $200000. The following items were then discovered. 1 Depreciation charges had been overstated by $20000. 2 The value of closing inventory was overstated by $15000. 3 A year-end accrual for wages was needed, $8000. 4 A year-end adjustment for prepaid insurance, $2500, was required. What was the corrected profit for the year?
A$159500
B$199 500
C$240 500
D$245 500
✓ Correct answer
B: $199 500
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