A company’s statement of profit or loss for the year ended 31 December 20X5 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 the motor expenses account. It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition. What would the net profit be after adjusting for this error?
A company’s statement of profit or loss for the year ended 31 December 20X5 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 the motor expenses account. It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition. What would the net profit be after adjusting for this error?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...
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A company’s statement of profit or loss for the year ended 31 December 20X5 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 the
motor expenses account. It is the company’s policy to
straight line basis, with a full year’s charge in the year of acquisition.
What would the net profit be after adjusting for this error?
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