Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 18)
What would be the effect of incorrectly crediting the sales account instead of crediting the bank account for cash sales?
The trial balance would be out of balance.
Sales revenue would be overstated.
Cash would be overstated.
The error would not be detectable.
Explanation
Sales are inflated, as the cash receipt is recorded as a sale.
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