alleryStart learning →Last year's stock was overstated Rs 15,000 by a sum error; bad debt estimate rose Rs 10,000. Prior period item?
ARs 10,000
BRs 25,000
CRs 5,000
DRs 15,000
Answer & Solution
Correct answer: D. Rs 15,000
The addition mistake is an error of an earlier period (Rs 15,000), while the bad debt revision is only an estimate change.
Keep practising AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
Browse all AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies questions for CA Inter, or explore more Accounting topics.
Related questions
Bad debt provision is raised from Rs 20,000 to Rs 32,000 on new information. Extra charge Rent of Rs 25,000 for last year was omitted by error and received now. Other profit is Rs Profit Rs 8,00,000 before a Rs 20,000 prior period expense and Rs 1,50,000 extraordinary gProfit before a missed prior-year expense is Rs 3,00,000; the expense is Rs 30,000. Net prProfit from ordinary activities is Rs 5,00,000 and an extraordinary earthquake loss is Rs A Rs 90,000 machine, nil scrap, had 9 years straight line. After 3 years, total life is 12Last year's depreciation of Rs 40,000 was missed by oversight and charged now. It isOrdinary activities include business activities and those