Goods purchased from A for Rs. 10,000 passed through the sales book. The error will result in
If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the
This error will give the double affect as instead of credit of Rs.1000 for purchase return, a debit of Rs.1000 is posted to sales return a/c.
Due to this, debit of trial balance will be Rs.2000 more than the credit side.
If the amount is posted in the wrong account or it is written on the wrong side of the account, it is called
If a purchase return of Rs.84 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show:
Rs. 200 paid as wages for erecting a machine should be debited to
On purchase of old furniture, the amount of Rs. 1,000 spent on its repair should be debited to
Goods worth Rs. 50 given as charity should be credited to
Goods worth Rs. 100 taken by proprietor for domestic use should be credited to
Errors of commission do not permit;
The preparation of a trial balance is for:
Rs. 200 received from Smith whose account, was written off as a bad debt should be credited to :
Purchase of office furniture Rs. 1,200 has been debited to General Expense Account.It is :
Goods destroyed by fire should be credited to
The correct answer is A.
The goods destroyed by fire is a loss for the business and is a nominal account. Therefore, according to the rule of nominal account, all the expenses and losses are to be debited. Hence, "Loss by fire A/c" is debited when goods are destroyed by fire and "purchases A/c" is credited.
Sales of office furniture should be credited to
The sale of furniture is credited to the furniture account.