A-LevelAccountingReconciliation and verification9706/12 · Oct/Nov 2020 · Q31 Mark
A trader depreciates fixtures and fittings at the rate of 10% per annum on cost. On 1 January 2019 a purchase of new fixtures and fittings, $5000, was posted to the advertising account in error. What was the effect of this error on the trader's capital account on 31 December 2019?
Aoverstated $4500
Boverstated $5000
Cunderstated $4500
Dunderstated $5000
✓ Correct answer
C: understated $4500
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