Accounting for IGCSE & O level - Accounting Procedures (Section 24 - No. 9)
A sales invoice for $750 was entered in the sales journal and posted to the correct customer's account, but the bookkeeper accidentally entered the amount as $75 in the sales ledger control account. What is the effect on the control account?
The balance is correct.
The balance is overstated.
The balance is understated.
The error does not affect the account.
Explanation
The control account is understated.
Comments (0)
