A trader charges depreciation on fixtures and fittings at the rate of $10\%$ per annum based on cost. On 1 January 2019, a purchase of new fixtures and fittings, $5000, was entered in error in the advertising account. What impact did this error have on the trader’s capital account on 31 December 2019?
- Aoverstated $4500
- Boverstated $5000
- Cunderstated $4500
- Dunderstated $5000