Impact of errors

NotesQuizCBEMock

When errors are corrected they may affect the business' profit for the year figure. In order to find the correct figure for profit, a statement of adjustments to profit has to be prepared.

Proforma – Statement of Adjustment to Profit

$ $ $
+ -
original profit x
adjustment:
over depreciation expense charged x
unrecorded expense x
unrecorded sale x
---- ----
x (x) x
----
adjusted profit x
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NotesQuizCBEMock