Trevor drew up his financial statements for the year ending 31 December 2020. He later realised that he had failed to enter a cash payment of $240 for insurance covering the 12 months ending 30 November 2021. What effect did this error have on his statement of financial position?
- Acash $240 overstated, other receivables $20 understated, capital $220 overstated
- Bcash $240 overstated, other receivables $220 understated, capital $20 overstated
- Ccash $240 understated, other receivables $20 overstated, capital $220 understated
- Dcash $240 understated, other receivables $220 overstated, capital $20 understated