Accounting for IGCSE & O level - Accounting Procedures (Section 12 - No. 16)
If a business records a credit purchase of inventory in the cash payments journal, what is the effect on the trial balance?
The trial balance will be out of balance.
The trial balance will still balance.
Purchases will be overstated.
Cash will be overstated.
Explanation
The error still maintains the double-entry accounting.