A payment of 720 to a supplier has been incorrectly posted to the sales ledger control account.
Question:
A payment of £720 to a supplier has been incorrectly posted to the sales ledger control account. The effect of this error is:
(a) to overstate debtors' balances by £720 and understate creditors' balances by the same amount;
(b) to understate both debtors' and creditors' balances by £720;
(c) to overstate both debtors' and creditors' balances by £720;
(d) to understate debtors' balances by £720 and overstate creditors' balances by the same amount.
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Kirti Kaushal
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Related Book For 
Financial Accounting And Reporting An Introduction
ISBN: 978-0333346402
1985 Edition
Authors: R. Limmack
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