Accounting for IGCSE & O level - Accounting Procedures (Section 10 - No. 44)
What is the effect on the financial statements when drawings of £6,000 were not recorded?
Cash is understated by £6,000. Drawings are understated by £6,000
Cash is understated by £6,000. Capital is understated by £6,000
Cash is overstated by £6,000. Drawings are overstated by £6,000
Cash is understated by £6,000. Expenses are overstated by £6,000
Explanation
The expenses and drawings have not been recorded, the effect will be cash understated by £6,000 and capital is understated by £6,000.
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