WAEC Accounting 2021 Paper

Concept:Undercasting sales means recorded sales are lower than the actual figure, so the correction adds to sales.Explanation:Sales are increased by $\text{GH¢}1,000$.Gross profit is calculated as Sales minus Cost of sales.Since cost of sales is unchanged, gross profit rises by $\text{GH¢}1,000$.Net profit is calculated as Gross profit minus Expenses.Expenses are also unchanged, so net profit also rises by $\text{GH¢}1,000$.Answer:Both gross profit and net profit would increase by $\text{GH¢}1,000$.This corresponds to option B.