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Fixing the profit after realizing errors

 
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Fixing the profit after realizing errors
danjgud
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Posts: 2
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Joined: Dec 2010
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#1
12-16-2010, 07:15 AM
Hi,

The problem is like this. There are errors in both years which means the account is either over or understated.


2009
Inventory 120.000 overstated
Depreciation68.000 understated
Accumulated depreciation 68.000 understated
Insurance cost 22.000 overstated
Prepaid insurance76.000 understated

2010
Inventory 134.000 overstated
Depreciation0
Accumulated depreciation 68.000 understated
Insurance cost 22.000 understated
Prepaid insurance0

The recorded profit of 2010 before realizing these errors was 100.000. What is the profit in 2010 after realizing these errors?
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Messages In This Thread
Fixing the profit after realizing errors - by danjgud - 12-16-2010, 07:15 AM
[No subject] - by zahid 13456 - 12-16-2010, 06:12 PM

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