Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

A cheque from D Pawson, who is a trade receivable, was entered correctly on the debit side of the bank account but was credited to the account of P Dawson, a trade payable. What effect did correcting this error have?

  • Atrade receivables decrease; trade payables decrease
  • Btrade receivables decrease; trade payables increase
  • Ctrade receivables increase; trade payables decrease
  • Dtrade receivables increase; trade payables increase

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