Sales return a/c dr 1200
purchase Returna/c dr 1200
To suspense a/c 2400

Rectifying Error in Purchase Return Book

When a customer returns goods worth 1200, it is essential to record the transaction accurately in the books of accounts. If the entry is made in the purchase return book instead of the sales return book, it can lead to errors in the financial statements. Here are the steps to rectify this error:

1. Identify the error: The first step is to identify that the entry is made in the wrong book. In this case, the goods are returned by the customer, which should be recorded in the sales return book. However, the entry is made in the purchase return book.

2. Correct the entry: Once the error is identified, the next step is to correct the entry. The entry should be reversed in the purchase return book, and a new entry should be made in the sales return book. The entry in the purchase return book should be debited to the supplier's account and credited to the purchase return account. The entry in the sales return book should be debited to the sales return account and credited to the customer's account.

3. Update the ledger accounts: After making the necessary entries, the ledger accounts should be updated. The supplier's account should be debited in the purchase ledger, and the customer's account should be credited in the sales ledger.

4. Reconcile the accounts: Once the ledger accounts are updated, the next step is to reconcile the accounts. The purchase return account and sales return account should be reconciled to ensure that the entries are accurate.

5. Verify the financial statements: Finally, the financial statements should be verified to ensure that the correction has been made correctly. The profit and loss account and balance sheet should be checked to ensure that the figures are accurate.

In conclusion, rectifying errors in the purchase return book is crucial to maintain accurate financial statements. By following the above steps, the error can be corrected, and the books of accounts can be reconciled.