Scribd
Upload
591 views

Corrected Net Profit Exersice

The document contains an accounting worksheet with questions about identifying errors that affect net profit and correcting net profit based on discovered errors. It asks the student to indicate how various errors, such as undercasting purchases, affect net profit and the required correcting action. It also provides information about a business that made N$1,400 net profit and lists errors discovered, such as omitted interest and incorrect inventory inclusion, and asks the student to prepare a corrected net profit statement.

Uploaded by

Martha Anton
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
591 views

Corrected Net Profit Exersice

The document contains an accounting worksheet with questions about identifying errors that affect net profit and correcting net profit based on discovered errors. It asks the student to indicate how various errors, such as undercasting purchases, affect net profit and the required correcting action. It also provides information about a business that made N$1,400 net profit and lists errors discovered, such as omitted interest and incorrect inventory inclusion, and asks the student to prepare a corrected net profit statement.

Uploaded by

Martha Anton
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

GROOTFONTEIN SECONDARY SCHOOL

ACCOUNTING WORKSHEET
Name……………………………………………………….. Grade 10

1. Indicate how each of the following errors affected the net profit. Indicate “no
effect”if the error does not affect the net profit.
Example: Purchases was undercast, N$ 200
No. Errors How error Action
affected required to
net profit correct the
error

E.g Purchases was undercast by N$ Overstated Decrease by


200 by N$ 200 N$ 200
1 Sales to P.Maseka entered in
E.Maseka,s account , N$ 1 400
2 Stationery for cash, N$540 recorded in
the credit side of both accounts.
3 EFT of N$900 received for rent
recorded in the books as N$400.
4 Carriage inwards of N$350 included in
the purchases account.
5 One page of creditors returns journal
was not posted,N$720.
6 Donation of goods N$760 recorded on
the wrong side of both accounts.
7 Discount received of N$600 was
omitted from the income statement.
2. Joseph Edward has a trading business. His business made a net profit of
N$14 00 for the year ended 31 October 2016. The following errors were
discovered after the financial statements were already prepared.
1. Interest on unfavourable balance of N$780 was omitted from the books.
2. Repairs to a computer of N$1 200 entered in the repairs account as
N$1750.
3. Petty cash book was restored with N$320 cash. The transaction was
omitted.
4. Inventory at 31 October 2016 included goods to the value of N$800 which
were disposed of at no cost.
5. The debtors’ journal was overcast by N$450.
6. Only a proof of payment sent to Municipality for water and electricity for
N$800 were observed but no entry recorded.

(i) Prepare a statement of corrected net profit to calculate the correct net
profit for Joseph Edward for the year ended 31 October 2016.
Joseph Edward
Statement of corrected net profit for the year ended 31 October 2016

Errors Increase Decrease Balance

You might also like