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Multiple choice

Goods sold to Y for Rs. 10, 000 passed through the purchases book. The error will result in

  1. increase in gross profit

  2. decrease in gross profit

  3. no effect on gross profit

  4. either (1) or (2)

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Correct entry :- Cash A/c debit  To Y A/c 

Entry Done:- Purchase A/c debit   To Cash A/c SO It will decrease the gross Profit. 

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