Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 16)

A sales commission of £160 amount was misposted as £400. What impact did it make to the draft profit?
Income and profits are understated by £240
Income and profits are understated by £160
Income and profits are overstated by £240
Income and profits are overstated by £160

Explanation

The profit decreases by 240 since the expense was overstated.

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