O-LevelAccountingVerification of accounting records7707/11 · Oct/Nov 2017 · Q151 Mark

A trader incorrectly posted sales returns of $100 to the credit of purchases returns account. What was the effect on the gross profit?

Aoverstated $100

Boverstated $200

Cunderstated $100

Dunderstated $200

✓ Correct answer

B: overstated $200

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2017 Paper 1 Variant 1, question 15.

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