Accounting for IGCSE & O level - Accounting Procedures (Section 21 - No. 19)
If a building cost of £240 was debited to the premises account instead of Repairs account, which of the following is true?
Expenses are overstated and the profit is understated.
Expenses are understated and the profit is overstated.
Expenses are overstated and the profit is overstated.
Expenses are understated and the profit is understated.
Explanation
Expenses are understated and the profit is overstated.
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