Question

The following errors were committed by the Accountant of Geete Dye-Chem.
(i) Credit sale of Rs. 400 to Trivedi & Co. was posted to the credit of their account.
(ii)Purchase of Rs. 420 from Mantri & Co. passed through Sales Day Book as Rs. 240 How would you rectify the errors assuming that :
(a) they are detected before preparation of Trial Balance.
(b) they are detected after preparation of Trial Balance but before preparing Final Accounts, the difference was taken to Suspense A/c.
(c) they are detected after preparing Final Accounts

Answer 1

Answer:

before trial balance preparation we can open then account and adjust it their but after trial balance preparation we need to open suspenseand P&L adjustment account