O-LevelAccountingVerification of accounting records7707/11 · May/June 2025 · Q91 Mark
After calculating his profit for the year, Yui discovered the following errors. 1 A purchase of a new motor vehicle for $3200 was debited to motor expenses. 2 The purchases account was overcast by $500. What was the effect on the profit for the year after correcting these errors (ignore depreciation)?
AIt decreased by $2700.
BIt decreased by $3700.
CIt increased by $2700.
DIt increased by $3700.
✓ Correct answer
D: It increased by $3700.
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