Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 34)
A sales invoice for $500 was entered in the sales journal, but the corresponding entry to the customer's account in the sales ledger was only $50. How will this error affect the sales ledger control account?
The sales ledger control account will be understated.
The sales ledger control account will be overstated.
The sales ledger control account will not be affected.
The error cannot be determined from the information given.
Explanation
The control account would be understated, as the credit side would be less than the actual entry amount.
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