Question

a purches return of 7800was entered in return inverd book by 8700 the rectification of errir will result in ​

Answer 1

Answer:

Returns outwards book was undercast by Rs. 150. It is an error of commission. Since the error has affected the profit & loss account, the rectification entry needs to be passed through the profit & loss adjustment account. The following rectification entry needs to be passed:

Suspense A/c Dr. 150

To Profit & Loss Adjustment A/c 150