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Accounting
1. A bookkeeper in error recorded the purchase cost of a new item of equipment as GHC36,000 when it should have been GHC360,000. A draft profit of GHC2,560,000 for the period was calculated before the discovery of the error. This included a depreciation charge of 10% (GHC3,600) for the equipment. What is the correct figure for profit?

1. A bookkeeper in error recorded the purchase cost of a new item of equipment as GHC36,000 when it should have been GHC360,000. A draft profit of GHC2,560,000 for the period was calculated before the discovery of the error. This included a depreciation charge of 10% (GHC3,600) for the equipment. What is the correct figure for profit?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. A bookkeeper in error recorded the purchase cost of a new item of equipment as GHC36,000 when it should have been GHC360,000. A draft profit of GHC2,560,000 for the period was calculated before the discovery of the error. This included a depreciation charge of 10% (GHC3,600) for the equipment. What is the correct figure for profit? 

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