In: Accounting
pixel copies recorded a cash collection on account by
debiting cash and crediting accounts payable. what will the trial
balance show for this error?
A. cash is overstated
B. The trial balance will not balance
c. Expenses are overstated
d. Liabilities are overstated
Correct Entry for recorded a cash collection on account is :-
debiting cash and crediting accounts Receivable
But Entry recorded incorrectly :-
debiting cash and crediting accounts payable
Account payable is liability which is wrongly credited instead of account receivable'
Hence Liabilities are overstated
Option D is correct