Accounting – 3.2 Correction of errors | e-Consult

The following information relates to PQR Company for the year ended 31 December 2023:

• Revenue: £200,000
• Gross Profit: £60,000
• Administrative Expenses: £30,000
• Interest Expense: £2,000

It was discovered that the gross profit figure was calculated incorrectly. The cost of goods sold was initially calculated as £140,000, but should have been £120,000. Also, £1,000 of administrative expenses were incorrectly omitted from the initial calculation.

Calculate the corrected profit for the year ended 31 December 2023.