Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 35)
A drawing of £6,000 was not recorded, what effect will it have on the financial position?
Cash in bank understated by £6,000, drawing understated by £6,000.
Cash in bank overstated by £6,000, drawing overstated by £6,000.
Cash in bank understated by £6,000, capital understated by £6,000.
Cash in bank overstated by £6,000, capital overstated by £6,000.
Explanation
Drawings not being recorded will result in understatement of drawings and an understatement of cash in bank.
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