A business statement of profit or loss and other comprehensive income for the year ended 31 December 20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company's policy to depreciate motor vans at 25 per cent per year, with a full year's charge in the year of acquisition. What would the net profit be after adjusting for this error? A $106,100 B $70,100 C $97,100 D $101,600
A business statement of profit or loss and other comprehensive income for the year ended 31 December 20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company's policy to depreciate motor vans at 25 per cent per year, with a full year's charge in the year of acquisition. What would the net profit be after adjusting for this error? A $106,100 B $70,100 C $97,100 D $101,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business statement of profit or loss and other comprehensive income for the year ended 31 December
20X4 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor
van had been debited to motor expenses account. It is the company's policy to
25 per cent per year, with a full year's charge in the year of acquisition.
What would the net profit be after adjusting for this error?
A $106,100
B $70,100
C $97,100
D $101,600
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