Question

the purchase of rupees 67 has been posted to the trade payables account as rupees 60 rectification of error​

Answer 1

Answer:

so first of all dnt get confused

the entry should be

purchase ac. dr 67

to trade payables ac 67

but we are not said there is fault in purchase so we have to see only fault in trade payable ac

now it depends on where is mistake found

if it is found before trial balance then

rectification = we would credit trade payables as it is undercast by 7 rs

if the fault is found before final account or in the next year

the entry is

suspense ac. dr 7

to trade payables ac 7

Explanation:

note :

suspense account is opened because when there is difference in either of the side in trial balance then the balance is transfered to the suspense ac ( whichever side total is lower its balance is transfered to suspense )

pls give brillianest answer ❤

Answer 2

Answer:

I know Im a bit late. Anyways, here you go:

The correct entry:

Purchases A/c ..DR 67

 To Creditors A/c          67

Rectification entry:

Suspense A/c ..DR 7

 To Creditors A/c    7

Explanation:

There is no separate account called 'Trade Payables Account'. 'Trade Payables' is a collective word used for Bills Payable and Creditors. Since they've mentioned Trade Payables' account, ie Trade Payable's Account, mind the " 's ",  it is an indication that it it was posted as 60 to the Creditors A/c instead of being 67.

Now, a question may arise, Why do we assume it to be credited to Creditors A/c rather than Bills Payable A/c?

We cant assume Bills Payable A/c to be opened here, because the entry for a credit purchase will be

Purchases A/c

 To Creditors A/c

If a bill was drawn on us, then

Creditors A/c

  To Bills Payable A/c

This is why we assume it to be Creditors A/c rather than Bills Payable A/c.