Question

Cash Purchases from ajay Rs.189 were recorded in cash book as well as in purchase book and posted from both​

Answer 1

Answer:

this is not correct question

Answer 2

Answer:firstly, cash purchases are recorded in cash book , and question also says that we have recorded cash purchases in cash book, so cash purchases from cash book needs no correction,,

Secondly question also says that we have recorded cash purchases in purchase book, it needs correction because only credit purchases are recorded in purchases book. But we must remember that we have treated cash purchases as credit purchases and recorded the same in purchases book as.,

purchases A/C Dr 189

To ajay account 189

But the whole transaction is wrong and we need to balance the entry, the easy way of balancing the entry is to show the opposite effect I. e

Ajay account Dr 189

Purchases A/c 189 Hence rectified

Explanation: