A withdrawal slip indicates a cash withdrawal of rs. 15000 which was charged as drawing. however it was noticed that rs. 11000 was used for business purpose only and was entered as expense in cash book
journal entry
Answers
Answered by
2
Answer:
Drawings account 15,000
To cash A/c 15,000
Wrong entry:-
Trade expenses A/c 15,000
To Cash A/c 15,000
Rectification entry:-
Drawings A/c 15,000
To Trade expenses A/c 15,000
As the trade expenses account was wrongfully debited its to be credited and drawing account has to be debited.
Explanation:
Answered by
0
Answer: THE GIVEN ANSWER IS WRONG. THE CORRECT ENTRY IS
1. WRONG ENTRY: CASH ACCOUNT Dr - 15,000
DRAWINGS ACCOUNT Dr- 15,000
2. CORRECRT ENTRY: TRADE EXPENSES ACCOUNT Dr - 11000
DRAWINGS ACCOUNT Dr - 15000
TO CASH - 26000
3. RECTIFIED ENTRY: TRADE EXPENSES ACCOUNT Dr- 11000
TO DRAWINGS - 11000
Explanation:
Similar questions