Q. ` 5,000 paid as local cartage on material purchased. However this amount was booked underMiscellaneous Expenses A/c instead of on Carriage Inward. Due to this error net profit and loss will— (Solved)

1. Increase by ` 5,000 ;

2. Decrease by ` 5,000 ;

3. Increase by ` 10,000 ;