Accounting for IGCSE & O level - Accounting Procedures (Section 21 - No. 3)
When correcting the error of the original entry, which of the following errors would cause the profit to be misstated?
A building cost was debited to the premises account instead of the repair account.
Electricity expenses were understated and reversed.
Drawing was not recorded in the books.
A sales commission of £160 was misposted and recorded as £400.
Explanation
Sales commission was recorded for the wrong amount, which causes profit to be misstated.
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