MGT101 GDB

Gross profit before correcting the error 335,000

Less:
Carriage inward (35,000)
Add:
Carriage outward 15,000

Correct gross profit 315,000

ABC BROTHERS

Sales 400,000
GF 335,000
CGS before correcting 65,000

Add Carriage inward 35,000

Less Carriage outward 15,000

Cost of good sold after 85,000

Correcting the error
Gross profit after 315,000
Correcting the error

Cost of good sold will be understated.

Net profit will be overstated.