1.You are given the following information: Purchase of goods 53.200€ 1/2 with cash and the rest with credit was registered as a sale of goods of equal value 1/2 with cash and the rest with credit. The correction record is requested a) if the error was found in the fiscal year (2020) and b) if the error was found in the next financial year (2021) i.e. the error while it was made in 2020 the correction record takes place in 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1.You are given the following information:

Purchase of goods 53.200€ 1/2 with cash and the rest with credit was registered as a sale of goods of equal value 1/2 with cash and the rest with credit. The correction record is requested a) if the error was found in the fiscal year (2020) and b) if the error was found in the next financial year (2021) i.e. the error while it was made in 2020 the correction record takes place in 2021.

2.You are provided with the following information:

The damage from the destruction of insured machinery that took place on 30/9/2020 was not recorded in the relevant accounts. The insurance company has undertaken to cover 70% of the residual value of the machines. The machines were purchased on 1/5/2018 instead of 198.000€ and the amount of the annual depreciation of the machines is 19.800€. A correction record is requested (a) if the error was found in the financial year (2020) and (b) if the error was found in the next financial year (2021), i.e. the error while the correction was made in 2020, the correction entry is made in 2021.

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