Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Tom's current account was in credit. A partner's salary of $5000 and interest on drawings of $800 had both been entered on the wrong side of his current account. What effect did these mistakes have on the balance of his current account?

  • A$8400 overstated
  • B$8400 understated
  • C$11 600 overstated
  • D$11 600 understated

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