O-LevelAccountingVerification of accounting records7707/12 · May/June 2022 · Q81 Mark
After the preparation of Abdul's draft financial statements, two errors were discovered. The purchase of a machine by bank transfer, $5000, was omitted from the accounts. The purchase of a motor vehicle, $15000, was entered in the motor vehicle repair account. What effect will correcting these errors have on the non-current assets and the working capital?
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Aincrease 15000 decrease 5000
Bincrease 15000 no effect
Cincrease 20000 decrease 5000
Dincrease 20 000 no effect
✓ Correct answer
C: increase 20000 decrease 5000
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