Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Sammy made a full payment of $190 to a credit supplier to clear a debt of $200, but he did not record the discount received. What impact did putting this error right have on Sammy’s statement of financial position?

  • Abank decreased; capital decreased; trade payables no effect
  • Bbank increased; capital no effect; trade payables decreased
  • Cbank no effect; capital decreased; trade payables increased
  • Dbank no effect; capital increased; trade payables decreased

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