CA Foundation Exam  >  CA Foundation Questions  >  If a purchase return of Rs. 1,000 has been wr... Start Learning for Free
 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
  • a)
    Trial balance would show the debit side to be Rs. 1,000 more than the credit
  • b)
    Trial balance would show the credit side to be Rs. 1,000 more than the debit.
  • c)
    The debit side of the trial balance will be Rs. 2,000 more than the credit side
  • d)
    The credit side of the trial balance will be Rs. 2,000 more than the debit side.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
If a purchase return of Rs. 1,000 has been wrongly posted to the debit...
Understanding the Error in Posting
When a purchase return of Rs. 1,000 is incorrectly debited to the sales returns account, it creates an imbalance in the trial balance. Let's break down the situation:
Correct Posting
- The purchase return should have been debited to the Purchase Returns account, which is a contra account to purchases.
- Instead, it was erroneously debited to the Sales Returns account.
Effect on Accounts
- Sales Returns Account: Increased by Rs. 1,000 (debit).
- Suppliers' Account: Correctly reflects the Rs. 1,000 return (credit).
Trial Balance Impact
- Debit Side:
- Increased by Rs. 1,000 due to the wrong entry in Sales Returns.
- Credit Side:
- Remains unchanged since the return was correctly posted to the suppliers' account.
Net Effect
- The total debits now reflect an excess of Rs. 1,000 due to the incorrect posting.
- Additionally, since the purchase return was meant to reduce purchases, the credit side should have included that reduction.
Final Calculation
- The debit side of the trial balance shows Rs. 1,000 more because of the incorrect debit to Sales Returns.
- Therefore, the total debit side is effectively Rs. 2,000 more than the credit side (Rs. 1,000 excess from the error plus the Rs. 1,000 that should have been reduced).
Conclusion
- The total debit side of the trial balance will be Rs. 2,000 more than the credit side, making option 'C' the correct answer.
Explore Courses for CA Foundation exam
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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer?
Question Description
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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer?.
Solutions for 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice 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 thea)Trial balance would show the debit side to be Rs. 1,000 more than the creditb)Trial balance would show the credit side to be Rs. 1,000 more than the debit.c)The debit side of the trial balance will be Rs. 2,000 more than the credit sided)The credit side of the trial balance will be Rs. 2,000 more than the debit side.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev