Once Abdul’s draft financial statements had been prepared, two mistakes were found. The purchase of a machine by bank transfer, $5000, had been left out of the accounts. The purchase of a motor vehicle, $15000, had been recorded in the motor vehicle repair account. What effect will the correction of these mistakes have on the non-current assets and the working capital?
- Anon-current assets: increase 15000; working capital: decrease 5000
- Bnon-current assets: increase 15000; working capital: no effect
- Cnon-current assets: increase 20000; working capital: decrease 5000
- Dnon-current assets: increase 20000; working capital: no effect