Mgt 101 GDB solution

Q:01 solution.

Gross profit correcting error=335000

Less carriage inward:

Carriage inward=35000

335000-35000=300000

Add carriage outward:

Carriage outward=15000

300000+15000=315000

Correct gross profit=315000

Q:02

Cost of goods sold correcting error:

sales –  gross profit =cost of goods sold

400000-335000=65000

Now add carriage inward and less carriage outward in 65000

COGS=65000+35000-15000=850000

COGS=85000

Q:03

 understated.

Q:04

 overstated.