[Lillian]

I have the following question:

The Trial Balance of Harris at 31 Dec X13 showed a difference which was posted to the suspense account. the net profit was calculated as $47 240

the following errors were discovered:

a) purchases from Brick amounting to $765 had been received on 31 Dec 2013 and included in the closing inventory at that date, but the invoice had not been entered in the purchase ledger

isn’t it that we Dr: purchases 765
Cr: payables765

how does it affect the closing inventory and the net profit?

[Author]

Posts