Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

A trader added further capital of $4000$. In error, this was entered as a debit in the capital account and a credit in the bank account. What effect will correcting this error have on the statement of financial position?

  • Acapital decreases by $4000$; bank decreases by $4000$
  • Bcapital decreases by $8000$; bank decreases by $8000$
  • Ccapital increases by $4000$; bank increases by $4000$
  • Dcapital increases by $8000$; bank increases by $8000$

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