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Question

Sales of trading goods accounting to Rs. 6540 was wrongly recorded in sales day book as Rs.5640, however, the mistake was rectified before finalization of accounts. On rectification of the error before preparation of Final accounts, the profit and loss of the firm will ______.

A
remain same
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B
increase by Rs.900
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C
increase by Rs.6540
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D
increase by Rs.5640
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Solution

The correct option is A remain same
Since the transactions were wrongly recorded in sales day book but later on the mistake was rectified before the finalization of account, there will be no affect on profit & loss account.
The error got corrected before the books are finalized.

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