Accounting for IGCSE & O level - Accounting Procedures (Section 8 - No. 12)

How the balance of the purchases ledger will be affected in the below scenario: \$200 of discount allowed was omitted.
Expenses were understated by \$200
Capital was overstated by \$200
Expenses were overstated by \$200
Capital was understated by \$200

Explanation

Expenses were overstated by \$200.

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