O-LevelAccountingVerification of accounting records7707/13 · Oct/Nov 2024 · Q101 Mark

Jane took cash drawings from the business. The amount was debited to the purchases account and credited to cash. How did this error affect the profit for the year and the current assets in the financial statements?

Adecrease no effect

Bincrease no effect

Cno effect decrease

Dno effect increase

✓ Correct answer

A: decrease no effect

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2024 Paper 1 Variant 3, question 10.

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