Accounting for IGCSE & O level - Accounting Procedures (Section 16 - No. 5)
A purchase of $200 worth of goods on credit was entered in the cash book as a cash payment. How will this affect the trial balance?
The trial balance will balance.
The trial balance will be out of balance.
Purchases will be understated.
Cash will be understated.
Explanation
Incorrect entries lead to imbalance.
Comments (0)
