The answer to the below question will be as follows:
Cheque of $500 sent by a creditor not recorded Working Capital will Increase No effect on Net Profit
Stock to be written off by $370 Working Capital will be the same
Net Profit will reduce
Bad Debts written off by $500 Working Capital will be the same
Net Profit will reduce
Provision of Depreciation Increased to $500 Working Capital will be the same Net Profit will reduce
Machine of net book Value $4000 sold for $4000 No effect
No effect on Net Profit
