O-LevelAccountingVerification of accounting records7707/11 · Oct/Nov 2015 · Q81 Mark
An invoice for goods purchased on credit, $100, was entered in the purchases journal as $1000. How will this affect the trial balance?
Ano effect | – | no effect | –
Bno effect | – | trade payables overstated | 900
Cpurchases overstated | 900 | no effect | –
Dpurchases overstated | 900 | trade payables overstated | 900
✓ Correct answer
D: purchases overstated | 900 | trade payables overstated | 900
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