Prior year errors

This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
November 7, 2016 at 1:11 pm #347848
jaydenlee
Member
- Topics: 2
- Replies: 1
In a case where there’s prior year overvaluation of inventory, for instance £10,000 of goods sold were included in the closing inventory.

Can I know what are journal entries needed for the adjustment?
November 7, 2016 at 1:16 pm #347850
MikeLittle
Keymaster
- Topics: 27
- Replies: 23370
In last year’s records, increase cost of sales and therefore reduce profit for last year

That gives a reduced figure for retained earnings carried forward into this year and a corresponding reduced figure for inventory carried forward into this year

OK?
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.