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What is the profit for the year after adjusting for errors

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Reference no: EM132917892

Question - After the accountant of Samaras Co, had prepared the financial statements for the year ended 31 Jan 2017, the following errors came to light:

1) A motor van purchased at a cost of $12,000, with accumulated depreciation at the beginning of the year of $4,000, had been depreciated at 20% using the reducing balance method rather than the straight-line method of depreciation

2) The payment of $1,500 for trade payable had been treated as a cash purchase

3) Withdrawals by the owner of $3,000 during the year had been treated as part of the salaries & wage expense

4) Bank charges of $400 during the year had been treated as an interest charge

The profit for the year before these errors was discovered was $42,000.

What is the profit for the year after adjusting for these errors?

Reference no: EM132917892

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