Question

Goods purchased from Mr A Rs 30000Rs.30,000 passed through the sales book. The error will result in ___________.

• A. increase in gross profit
• B. decrease in gross profit
• C. no effect on gross profit
• D. either (a) or (b)

Answer 1

The correct option is A increase in gross profit

Goods purchases of $Rs.30000$ has to be recorded in purchase account which will be a debit side. If it is passed through the sales book, this will result in an increase of gross profit by $Rs.60000$.

This will give double affect as instead of $Rs.30000$ debit, an entry of $Rs.30000$ passed through credit in sales account. Hence this will result in increase in gross profit.