Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 21)

What impact does not recording drawings of $3,000 have on the financial statements?
No impact on the draft profit, Capital understated by $3,000
Profit understated by $3,000, Capital understated by $3,000
No impact on draft profit, Capital overstated by $3,000
Profit overstated by $3,000, Capital understated by $3,000

Explanation

No impact on the draft profit, Capital understated by $3,000

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