Jane withdrew cash drawings from the business. The amount was entered as a debit in the purchases account and as a credit in cash. In the financial statements, how would this error affect the profit for the year and the current assets?
- Aprofit for the year: decrease; current assets: no effect
- Bprofit for the year: increase; current assets: no effect
- Cprofit for the year: no effect; current assets: decrease
- Dprofit for the year: no effect; current assets: increase