Accounting for IGCSE & O level - Accounting Procedures (Section 2 - No. 2)

How does the omission of drawings of $3,000 affect the draft profit and capital?
Profit is unaffected; Capital is understated by $3,000.
Profit is understated by $3,000; Capital is unaffected.
Profit is overstated by $3,000; Capital is understated.
Profit is understated by $3,000; Capital is understated.

Explanation

Profit is unaffected, and capital is understated.

Comments (0)

Advertisement