Question - After the accountant of Samaras Co had prepared the financial statements for the year ended 31 January Year 7, the following errors came to light:
1. A motor van purchased at cost of £12,000 and with accumulated depreciation at the beginning of the year of £4,000 had been depreciated at 20 percent using the reducing balance method rather than the straight-line method of depreciation.
2. The payment of £1,500 for a trade payable had been treated as a cash purchase.
3. Withdrawals by the owner of £3,000 during the year had been treated as part of the salaries and wages expense.
4. Bank charges of £400 during the year had been treated as interest charges.
The profit for the year before these errors were discovered was £42,000.
What is the profit for the year after adjusting for these errors?
A. £44,200
B. £46,100
C. £48,700
D. £45,700