Question

Rectify the following errors
Credit purchases from Raghu $20,000 were posted to the debit of Raghav

Answer 1

Answer:

In the second case, purchases from Raghu was debited to Raghav's A/c. Now, to rectify this firstly we need to credit Raghav's A/c with Rs 20,000 (to cancel the effect of wrong debit), credit Raghu's A/c with Rs 20,000 (earlier omitted) and Suspense A/c debited with Rs 40,000.

Answer 2

Answer:

$20,000 purchased credited posted to the debited

Explanation:

Effectively a posting error – the suspense account is again involved. A trial balance error must affect the suspense account – but no ledger entry. This one needs thought.