Miguel’s cash book showed a debit bank balance of $4220. He later found the following mistakes. 1 A cheque for $200, used to buy office equipment, had been entered wrongly in the office expenses account. 2 Bank charges of $30 had been entered in the cash book as $70. What effect did these mistakes have on his statement of financial position?
- Anon-current assets (cost) overstated by $200; current assets no effect
- Bnon-current assets (cost) understated by $200; current assets no effect
- Cnon-current assets (cost) understated by $200; current assets overstated by $30
- Dnon-current assets (cost) understated by $200; current assets understated by $40