Question

Q) Give Rectified Entry -
A dishonoured Bill of Exchange receivable for Rs. 1,600 returned by the firm’s bank had been credited to the Bank Account and debited to Bills Receivable Account. A cheque was received later from the customer for Rs. 1,600 and duly paid.

Answer 1

Answer:

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(i)

Suspense A/c

Dr.

10,000

To Purchases A/c

10,000

(Purchase book was overcastted by Rs 10,000, now rectified)

(ii)

Purchases Return A/c

Dr.

1,000

To Suspense A/c

1,000

(Purchase return book was overcastted by Rs 1,000, now rectified)

(iii)

Purchases Return A/c

Dr.

100

To Suspense A/c

100

(Purchase return book’s balance was carried forward in excess of Rs 100, now rectified)

(iv)

Suspense A/c

Dr.

1,000

To Purchases A/c

1,000

(Purchase book’s balance was carried forward in excess of Rs 1,000, now rectified)