Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 31)
What is the effect on profit when a payment to an employee has been debited to wages and credited to the bank account?
Expenses are overstated and profit is understated
Expenses are understated and profit is overstated
No effect on profit
Profit will be zero
Explanation
The wage is recorded correctly, there is no impact to the profit.
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