Paper 1 May/June 2012 Accounting (9706/11) A Level
Paul has a year end of 31 December.
On 1 January 2020, he bought a non-current asset for $\$ 10000$. He sold it on 1 January 2021 for $\$ 8500$.
Paul usually provides depreciation at the rate of 10% per annum. A full year’s depreciation is charged in the year of acquisition and none in the year of disposal. He forgot to provide for any
depreciation on this non-current asset.
What was the effect of this error on Paul’s profit for…