DK Ltd failed to accrue unpaid wages for the last week of each year: ₹56,000 (31 March 2010), ₹51,000 (31 March 2011) and ₹64,000 (31 March 2012). By how much was net profit for the year ended 31 March 2012 overstated?
Correct answer A. ₹13,000
Explanation
The year's expense wrongly includes ₹51,000 of the previous year's wages but omits its own ₹64,000. Profit is therefore overstated by the net ₹13,000.
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