Question

A cash payment of $130 on account was recorded as a $310 debit to accounts payable and a $310 credit to cash. the necessary correcting entry is

Answer 1

Wrong Entry Passed :

Accounts Payable A/C    Dr  $310

  To Cash A/C   $310

Correct Entry to be passed:

Accounts Payable A/C   Dr  $130

   To Cash A/C   $130

(being Cash paid )

Rectifying Entry :

Cash A/C   Dr $180

   To Accounts Payable $180

(being wrong entry passed , now rectified)