Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

The owner of a business withdrew goods for personal use but did not record this in the accounts. What effect did this error have?

  • Aprofit for the year overstated; capital no effect
  • Bprofit for the year overstated; capital understated
  • Cprofit for the year understated; capital no effect
  • Dprofit for the year understated; capital overstated

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