Question

Goods of rs.12,500 returned to thick and fast corporation were recorded in sales returns book as rs.21,500 and from there it was posted to the debit of thick and fast corporation

Answer 1

Answer:

sorry I didn't understand this ques

I think it is incomplete

Answer 2

Answer:

suspense a/c ......... Dr 21500

To thick and fast a/c 9000

To p/l adjustment a/c 12500

Explanation:

there are two errors 1. purchase return wrongly recorded as sales return 2. amount is also wrongly recorded.

first we need to remove extra debit to thick and fast corporation I.e (21500-12500=9000) by crediting it. also we need to remove wrong credit of 21500 in sales return by debiting it and credit 12500 to purchase return a/c.