Question

A sale of goods on credit to Mr. Gautam Rao for Rs.1000 has been entered through the invoice book.plz. rectify the error

Answer 1

Answer:

RECTIFIED JOURNAL OF THIS ENTRY IS:

Mr. Gautam  Dr. 2000

    To Sales A/C 1000

     To Bill Receivable A/C 1000

Explanation:

CORRECT                             WRONG

Mr. Gautam  Dr. 1000          Bill Receivable A/C  Dr. 1000

    To Sales A/C 1000                   To Mr. Gautam     1000

GAUTAM IS DOUBLED IN RECTIFIED JOURNAL ENTRY BECAUSE GAUTAM'S ACCOUNT GOES IN WRONG DIRECTION.LIKE A CAR IS IN MID AND IT GOES IN RIGHT DIRECTION BUT THEY WANT TO GO LEFT,SO THEY COVER DOUBLE DISTANCE.

I HOPE YOU UNDERSTAND.