Can you explain in detail what is happening here? 17.8 Daily Co's statement of profit or loss and other comprehensive income for the year ended31 December 20X4 showed a net profit of $83,600. It was later found that $18,000 paid for thepurchase of a motor van had been debited to motor expenses account. It is the company's policy todepreciate motor vans at 25% per year, with a full year's charge in the year of acquisition.What is Daily Co's net profit after adjusting for this error?

As per the Matching principle, all the revenue incomes & expenses of the same year should be…

Answered: Daily Co's s 31 Decemb ourchase of…

Business

Accounting

Daily Co's s 31 Decemb ourchase of lepreciate m What is Dail

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.2.1P

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Concept explainers

Computerized Accounting System

The Computerized Accounting System is generally a system of maintaining accounts using computers. In this method of accounting system, the accounting transactions are processed through the use of hardware and software to generate the reports such as journals, ledgers, trial balance, trading account, P/L accounts, balance and other reports.

Question

Can you explain in detail what is happening here?

17.8 Daily Co's statement of profit or loss and other comprehensive income for the year ended
31 December 20X4 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 motor expenses account. It is the company's policy to
depreciate motor vans at 25% per year, with a full year's charge in the year of acquisition.
What is Daily Co's net profit after adjusting for this error?

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