The payroll officer recorded wages for the month as a debit to the Sales account rather...

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The payroll officer recorded wages for the month as a debit to the Sales account rather than as a debit to Wages Expense acco

business accounting

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Answer 1

Answer #1

The correct answer is option B i.e. no effect on profit of the period.

Explanation.

Wrong entry passed was

Sales

cash

Correct entry is

Wages

Cash

Rectifying entry will be

Wages

Sales

Now, we can see that one nominal A/C is debited instead of the another one. Hence, there is no effect on profit or loss.

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Answer 2

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