passwella.
Menu

WAEC Financial Accounting 2021 Question 12

Question 12

Correction of Errors and Suspense Account

Sales account was undercast by GH¢1,000. When this is corrected, both the gross profit and the net profit would

  1. A.increase by GH¢2,000.
  2. B.increase by GH¢1,000
  3. C.decrease by GH¢1,000
  4. D.decrease by GH¢2,000.
Show the answer and explanation

Answer: B (increase by GH¢1,000)

Explanation

Adding the missing 1,000 of sales raises gross profit and net profit by GH¢1,000.