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After the accountant of Stallone Retailers had prepared the financial statements for the year ended...

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Accounting

After the accountant of Stallone Retailers had prepared the financial statements for the year ended 31 December Year 6, the following errors came to light:

1. A motor van purchased for £8,000 during the year had been charged to motor running expenses. The motor van should be charged with depreciation at the rate of 20% of cost.

2. Closing inventories, which had been used in calculating gross profit, had been overvalued by £3,000.

3. The owner had withdrawn £4,000 from the business in the form of goods acquired for resale, which had not been recorded.

4. An interest-free loan of £2,200 from a relative of the owner was repaid during the year but this was not recorded.The profit for the year before these errors were discovered was

£112,000.

What is the profit for the year after adjusting for these errors?

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