Question

What should be the rectifying adjustment entry for the following: £150 spent on a family trip enjoyed by Mr. George, the Director and recorded as office expenses in books. *

Answer 1

Answer:

The expenses incurred on the family trip of Mr khanna was debited to family expenses though this was his personal expenses and not office expense. Drawings should be debited and office expense should be credited to rectify the entry.

Answer 2

Answer:

mr.george spent 150 rupee