Unrectified errors are found: depreciation for 2011-12 understated by ₹7,000, and accrued expenses at 31 March 2013 understated by ₹10,000. What is the effect on reported net income for the year ended 31 March 2013?
Correct answer C. Overstated by ₹10,000
Explanation
The depreciation error relates to 2011-12 and does not affect 2012-13 profit. Unrecorded accrued expenses at 31 March 2013 mean current-year profit is overstated by ₹10,000.
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