Reference no: EM131724757

Question - After the accountant of Samaras Co had prepared the financial statements for the year ended 31 January Year 7, the following errors came to light:

1. A motor van purchased at cost of £12,000 and with accumulated depreciation at the beginning of the year of £4,000 had been depreciated at 20 percent using the reducing balance method rather than the straight-line method of depreciation.

2. The payment of £1,500 for a trade payable had been treated as a cash purchase.

3. Withdrawals by the owner of £3,000 during the year had been treated as part of the salaries and wages expense.

4. Bank charges of £400 during the year had been treated as interest charges.

The profit for the year before these errors were discovered was £42,000.

What is the profit for the year after adjusting for these errors?

A. £44,200

B. £46,100

C. £48,700

D. £45,700