After preparing the trial balance, the accountant of Xing Trading prepared the financial statements for the year ended 31 December 20X4. The following errors were discovered. Y Cheque of $950 was withdrawn by the owner for personal use. This has not been recorded in the books. 2 Credit sale of $1,460 has been recorded as $1,640. Office equipment maintenance fees of $620 have been recorded in the office equipment account. Credit note of $480 issued to a customer has been recorded in the debit column of the trade receivable account and the credit column of the sales returns account. 4 The profit for the year before discovering the errors was $26,520. The capital account had a balance of $63,725 before the profit for the year was transferred. (s) (a) State the effect of each error on profit for the year. (b) Prepare a statement to show adjusted profit for the year ended 31 December 20X4. c) Calculate owner's equity as at 31 December 20X4, after the errors are corrected.

After preparing the trial balance, the accountant of Xing Trading prepared the financial statements for the year ended 31 December 20X4. The following errors were discovered. Y Cheque of $950 was withdrawn by the owner for personal use. This has not been recorded in the books. 2 Credit sale of $1,460 has been recorded as $1,640. Office equipment maintenance fees of $620 have been recorded in the office equipment account. Credit note of $480 issued to a customer has been recorded in the debit column of the trade receivable account and the credit column of the sales returns account. 4 The profit for the year before discovering the errors was $26,520. The capital account had a balance of $63,725 before the profit for the year was transferred. (s) (a) State the effect of each error on profit for the year. (b) Prepare a statement to show adjusted profit for the year ended 31 December 20X4. c) Calculate owner's equity as at 31 December 20X4, after the errors are corrected.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the impact of being registered with the Public Company Accounting Oversight Board?
what is professional judgement in financial accounting ?
Distinguish between the following two accounting positions:controller and treasurer.
Why are we studying IT controls, functions, and job responsibilities in an accounting course?
Is Architecture useful in Accountancy course? Why or why not?
What are some of the major challenges facing the accounting profession?
What is meant by the term fresh start accounting ?
Define International Accounting Standards Committee.