ACCA每日考场66期 题目与答案解析

Y purchased some plant on 1 January 20X0 for $38,000. The payment for the plant was correctly entered in the cash book but was entered on the debit side of plant repairs account. Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in the year of acquisition, and assuming no scrap value at the end of the life of the asset. How will Y's profit for the year ended 31 March 20X0 be affected by the error? A. Understated by $36,100 B. Understated by $30,400 C. Understated by $38,000 D. Overstated by $1,900

正确答案：A

答案解析：

The correct answer is: Understated by $36,100. DEBIT Property, plant and equipment $38,000 CREDIT Plant repairs $38,000 DEBIT Dep'n expense $1,900 CREDIT Accumulated dep'n $1,900 Profit is understated by $38,000 - $1,900 = $36,100