How profit for the year affected by the errors


Question: When Gary Oldman extracted his trial balance at 31 May 2022 he opened a suspense account, as the total of the debit balances was $24 000 less than the total of the credit balances. He then discovered that: (i) he had recorded $2500 cash drawing on the debit side of the Capital Account and on the credit side of the cash account (ii) a cash sale for $400 had been correctly recorded in the cash account, but no other entry had been made. (iii) the payment of electricity bill by cheque $ 14 000 was recorded 1400 in the electricity Expense Account. How is his profit for the year to 30 November 2020 affected by the errors?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How profit for the year affected by the errors
Reference No:- TGS03417233

Expected delivery within 24 Hours