After the accountant of Cindy Candy Pte Ltd prepared the financial statements for the year ended 30 April 20X7, the following errors were discovered. 1 Purchase of an office table for $1,200 has been debited to the commission expense account. Receivable 2. Commission income of $2,000 earned for the year has not been received but was debited to the cash at bank account and credited to the commission income muloo account. Discount allowed of $130 has been debited to the discount received account. 4 Cheque payment of $220 for advertising expenses has been wrongly recorded in the books as $2,200. urbe.wore.o 5 Payment of $1,500 to Sweet Candy House has been debited to Candice Sweets. The statement of financial performance for the year ended 30 April 20X7 showed a profit of $7,300 before discovering the errors. Share capital and retained earnings, before the profit for the year was transferred, were $70,000 and $16,685 respectively. (a) Prepare a statement to show adjusted profit for the year ended 30 April 20X7. (b) Calculate the shareholders' equity as at 30 April 20X7, after the errors are corrected.

After the accountant of Cindy Candy Pte Ltd prepared the financial statements for the year ended 30 April 20X7, the following errors were discovered. 1 Purchase of an office table for $1,200 has been debited to the commission expense account. Receivable 2. Commission income of $2,000 earned for the year has not been received but was debited to the cash at bank account and credited to the commission income muloo account. Discount allowed of $130 has been debited to the discount received account. 4 Cheque payment of $220 for advertising expenses has been wrongly recorded in the books as $2,200. urbe.wore.o 5 Payment of $1,500 to Sweet Candy House has been debited to Candice Sweets. The statement of financial performance for the year ended 30 April 20X7 showed a profit of $7,300 before discovering the errors. Share capital and retained earnings, before the profit for the year was transferred, were $70,000 and $16,685 respectively. (a) Prepare a statement to show adjusted profit for the year ended 30 April 20X7. (b) Calculate the shareholders' equity as at 30 April 20X7, 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

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