Rectify the following error
a. Return outward book was undercast by Rs.2000
b. Return inward book was overcast by Rs.1000
c. Bills receivable book was overcast by Rs.400
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Answer:
a)Return outward account should be credited by Rs.2000
entry:suspense a/c. Dr 2000
To return outward 2000
b) return inward account is to be credited by Rs.
1000
entry:suspense a/c. Dr 1000
To return inward 1000
c)Bill recevable account is to be credited by Rs.400
entry: suspense account. Dr 400
To B/R a/c. 400
if the rectification is done in next year,
ONLY in entries (a) and (b) PROFIT AND LOSS ADJUSTMENT A/C will be CREDITED
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