At the end of a financial period, the trading profit and loss account of a company showed a profit of N120,000. It was however discovered that revenue of N12,000 was recorded as expenses while expenses of N4,000 had been recorded as revenue. What should be the correct profit for the period?

Horllarh

1 year ago

The answer is 136,000 (C).
the error committed there is a complete reversal of error and it is supposed to be treated by multiplying the errors by 2

Lyrices90

12 years ago

D recovery revenue must b less from d recovery expenses, i.e 12000-4000=8000, so this 8000 will b added to end profit, thus, 120000+8000=128000, so d ans is B