A-LevelAccountingReconciliation and verification9706/12 · May/June 2025 · Q81 Mark

After the profit for the year was calculated, the following errors were discovered. 1 Discount allowed of $550 was recorded as discount received. 2 Rental income of $3500 was recorded as an expense. 3 Wages of $4500 were recorded as $5400. What will be the effect on the profit for the year after correcting these errors?

Adecrease by $3850

Bdecrease by $6800

Cincrease by $3850

Dincrease by $6800

✓ Correct answer

D: increase by $6800

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Topic: Reconciliation and verification, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2025 Paper 1 Variant 2, question 8.

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