O-LevelAccountingVerification of accounting records7707/11 · Oct/Nov 2012 · Q181 Mark

A book-keeper made two errors. Repairs to machinery were debited in the machinery account. Purchase of a motor vehicle was debited in the purchases account. How are the non-current assets in the balance sheet affected?

Amachinery: overstated, motor vehicles: overstated

Bmachinery: overstated, motor vehicles: understated

Cmachinery: understated, motor vehicles: overstated

Dmachinery: understated, motor vehicles: understated

✓ Correct answer

B: machinery: overstated, motor vehicles: understated

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Topic: Verification of accounting records, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2012 Paper 1 Variant 1, question 18.

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A book-keeper made two errors. Repairs to machinery were debited in the machinery account. Purchase of a motor vehicle was debited in the purchases account. How are the non-current assets in the balance sheet affected?

✓ Correct answer

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