Accounting for IGCSE & O level - Accounting Procedures (Section 7 - No. 16)
The following errors were discovered and corrected in the books of finances. The error of failing to record $1,000 received, from P. Frazier, for cash is recorded as:
Increase assets by $1,000.
Reduce liabilities by $1,000.
No affect on the assets or liabilities.
Reduce profit.
Explanation
Cash is an asset, when the amount received in cash, this will increase assets.
Comments (0)
