Question

Santoro co produced a draft statement of the financial position at the year end which showed the owners equity of 4,50,000. It was later discovered however that the following transactions which all occurred on the last day of the financial year had not been taken into account. 1) Property which cost 3,26,000 had been revalued to 3,86,000 2) Inventories which cost 26,000 had been sold on credit for 31,000 3) The owner withdrew 22,000 in cash. 4) The trade receivable paid the amount owing of 23000 in full what will be the revised figure for owners equity after the above transactions are taken into account?
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Answer 1

Based on the revisions to the statement for Santoro Co., the revised figure for the owner's equity would be $493,000.

What is the new figure for owner's equity?

The revised figure can be found as:

= Beginning owner's equity + (Property readjustment) + Inventory readjustment - Withdrawals

Solving gives:

= 450,000 + (386,000 - 326,000) + (31,000 - 26,000) - 22,000

= $493,000

Find out more on account readjustment at brainly.com/question/4555544.

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