Accounting for IGCSE & O level - Accounting Procedures (Section 9 - No. 19)

In the scenario where a sales commission of $140 was misposted as $400, what is the impact on the capital?
Capital was overstated by $260.
Capital was understated by $260.
Capital was overstated by $300.
Capital was understated by $300.

Explanation

Capital was understated by $260.

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