N5 Accounting Types of Errors

What is the effect on the Profit for the Year of correcting the following error:-

The Purchases figure includes £2,000 for the purchase of a new machine

• Decrease £2,000

• Increase £2,000

• No Effect

• Decrease of £1,000

What is the effect on the Profit for the Year of correcting the following error:-

The Purchases of £1,000 of inventory had been omitted from the ledger

• Decrease £1,000

• Increase £1,000

• No Effect

• Decrease of £500

What is the effect on the Profit for the Year of correcting the following error:-

Closing inventory was over-added by £500

• Decrease £500

• Increase £500

• No Effect

• Increase £1,000

What is the effect on the Profit for the Year of correcting the following error:-

An invoice for insurance of £350 had been omitted from the accounts

• Decrease £350

• Increase £350

• No Effect

• Increase £700

What is the effect on the Profit for the Year of correcting the following error:-

A cash withdrawal of £600 had been entered in the Bank Ledger account but not in the Drawings account

• Decrease £600

• Increase £600

• No Effect

• Increase £1,200

What is the effect on the Profit for the Year of correcting the following error:-

Rent charge of £120 had been entered in error as £210 in both accounts

• Decrease £90

• Increase £90

• No Effect

• Decrease £180

What is the effect on the Profit for the Year of correcting the following error:-

The Cash and Cash Equivalents ledger had been under added by £200

• Decrease £200

• Increase £200

• No Effect

• Decrease £400

What is the effect on the Profit for the Year of correcting the following error:-

Carriage Out of £75 had been entered in the accounts as Carraige In in error

• Decrease £75

• Increase £75

• No Effect

• Decrease £150

What is the effect on the Profit for the Year of correcting the following error:-

Interest received of £80 had been treated as a Finance Cost

• Decrease £80

• Increase £80

• No Effect

• Increase £160

What is the effect on the Profit for the Year of correcting the following error:-

No entry has been made for the purchase of a second-hand van at a cost of £3,500

• Decrease £3,500

• Increase £3,500

• No Effect

• Decrease £7,000