Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 43)
How is the draft profit affected if a building was debited instead of Repairs?
Expenses understated by £240, Profit overstated by £240
Expenses overstated by £240, Profit understated by £240
Expenses understated by £240, Profit understated by £240
Expenses overstated by £240, Profit overstated by £240
Explanation
If you mistakenly debit the building instead of repair, the expenses will be less than the actual, so the profit will be more.
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