Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › error correction and profit
- This topic has 3 replies, 2 voices, and was last updated 2 weeks ago by
John Moffat.
- AuthorPosts
- August 12, 2024 at 4:13 pm #709575
Mylee’s draft accounts for the year ended 31 October 20X5 had a loss of $26,834.
On investigation Mylee discovered the following:
– a debt due of $750 should be written off as irrecoverable
– the allowance for receivables should be reduced from $2,350 to $1,980 the fixtures and fittings depreciation charge amounting to $870 had not yet been accounted for.
What was the adjusted result for the year?
$________ profit/loss* *delete which does not apply.
My calculation for final loss:
(26384)-750+370-870= -28085.
But in the answer provided, decrease in allowance has not been included. If it should not be included, could you explain the reason, please?August 12, 2024 at 7:59 pm #709587For the question as you have typed it, the answer is indeed a loss of 28084.
I don’t know where you found the question, but it seems from what you have written as though they have made an error in the typing somewhere.
August 13, 2024 at 5:12 pm #709630Thank you so much. The question is from Kaplan study text: practice question, number 79.
August 14, 2024 at 8:20 am #709643I do not have the Kaplan books, but what I wrote in my previous reply is correct 🙂
- AuthorPosts
- You must be logged in to reply to this topic.