Randwick Ltd Has a Year-End of 30 June 2009

question 50

Short Answer

Randwick Ltd has a year-end of 30 June 2009. During the year the following errors were discovereD.
-Merchandise inventory at the factory had been understated by $44,000.
-Goods on consignment from a supplier for $13,000 were included in inventory at the shops.
-Physical inventory for one warehouse had a shortage of $58,000
What is the net effect of above errors in the income statement and balance sheet (inventory) accounts of Randwick Ltd?

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