A-LevelAccountingReconciliation and verification9706/12 · May/June 2024 · Q41 Mark

Jason sold a non-current asset with a carrying value of $8000. He mistakenly recorded this by debiting the bank account and crediting the sales account with the proceeds of $6500. By which amount was the profit for the year overstated?

A$1500

B$5000

C$6500

D$8000

✓ Correct answer

D: $8000

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Topic: Reconciliation and verification, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2024 Paper 1 Variant 2, question 4.

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