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5 marksCorrection of Errors and the Suspense Account

CSEC Principles of Accounts · January 2011 · Paper 2 · Question 7(b)

Mrs Chin Lee recorded net profit of $36 500 for the year ended December 31, 2010. With reference to items (a)(i) to (iv) above, prepare a statement of corrected net profit.

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Other parts of this question

  1. 7(a)(i)Using a phrase or sentence, state the accounting concept NOT being followed: At the end of the year, Mrs Chin Lee owes…[1 mark]
  2. 7(a)(ii)Using a phrase or sentence, state the accounting concept NOT being followed: Mr Harris, a long-standing customer, promised to make a purchase of…[1 mark]
  3. 7(a)(iii)Using a phrase or sentence, state the accounting concept NOT being followed: Mrs Chin Lee uses the straight line method of depreciation on a yearly basis and…[1 mark]
  4. 7(a)(iv)Using a phrase or sentence, state the accounting concept NOT being followed: Mrs Chin Lee paid insurance on her house amounting to…[1 mark]
  5. 7(a)(v)Using a phrase or sentence, state the accounting concept NOT being followed: Mrs Chin Lee changes her stock valuation method every year.[1 mark]
  6. 7(c)List THREE external users and TWO internal users of accounting information and state ONE need of EACH user.[10 marks]

More practice: the rest of this paper · more Correction of Errors and the Suspense Account questions · all CSEC Principles of Accounts past papers