Accounting for IGCSE & O level - Accounting Procedures (Section 2 - No. 36)

What is the impact on the draft profit and financial position in the scenario where drawings of $3,000 were not recorded?
No impact on draft profit; No impact on draft financial position
Profit overstated by $3,000; No impact on draft financial position
Profit understated by $3,000; Capital understated by $3,000
No impact on draft profit; Capital understated by $3,000

Explanation

No impact on draft profit; Capital understated by $3,000.

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