Multiple choice

A purchase of Rs. 10, 000 has been wrongly posted to the debit of supplier's account but had been correctly entered in the purchase account. This error

  1. is an error of principle

  2. will not affect the trial balance

  3. will affect the gross profit

  4. none of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 The above mentioned entry will affect the trial balance but willnot affect the Gross Profit as it was posted correctly in the purchase account.

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