Question

An amount of Rs.200 due from Mahesh Chand, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to the Personal account of Mahesh Chand . Give the correct entry ,wrong entry and rectification entry​

Answer 1

Answer:

correct entry:

cash/bank Dr

To B. recovered

wrong entry:

cash/bank Dr

To Mahesh chand

rectified entry:

Mahesh chand Dr

To B. d recovered

Answer 2

Mr. Mahesh Chand's account has been wrongly credited and will be rectified by debiting with ₹200.

Explanation:

• The amount of ₹200 has been recovered from Mahesh Chand. The correct journal entry would have been:
• cash/bank a/c   dr.  200

               to b. d. recovered a/c  200

(being amount of ₹200 recovered from Mr. Mahesh Chand.)

• The wrong journal entry that has been made:
• cash/bank a/c  dr.  200

                    to Mahesh Chand   200

(being amount recovered wrongly posted to Mahesh Chand's account.)

• The entry will be rectified by debiting Mahesh's account and crediting b. d. recovered account. The rectified entry will be:
• Mahesh Chand   dr.  200

                 to b. d. recovered a/c   200

(being rectifying entry passed for wrong posting to Mahesh Chand's account.)