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An old furniture was sold for Rs 450 but the amount has been entered in sale day book as Rs.540. on rectification of this error suspense account will be​?
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An old furniture was sold for Rs 450 but the amount has been entered i...
Rectification of Error in Sale Day Book

Rectifying an error in the sale day book involves identifying the mistake made and making the necessary adjustments to correct it. In this case, an old furniture was sold for Rs 450, but the amount entered in the sale day book was Rs. 540.


Suspense Account

A suspense account is a temporary account used to hold transactions that cannot be immediately identified or allocated to the correct account. When an error occurs, and it cannot be immediately rectified, the transaction is recorded in the suspense account until the correct account is identified.


Impact on Suspense Account

In this case, the error made in the sale day book means that the amount of Rs. 90 was wrongly entered. Therefore, the Rs. 90 will be debited to the suspense account, and the sale day book will be credited with the correct amount of Rs. 450.


Conclusion

Rectifying errors in accounting is a crucial process that ensures the accuracy of financial records. In this case, the error made in the sale day book was rectified by debiting the suspense account and crediting the correct amount to the sale day book.
Community Answer
An old furniture was sold for Rs 450 but the amount has been entered i...
I think it's entry is
Sales A/c. Dr. 80
SuspenseA/c. Dr. 80
To Furniture A/c. 160
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Read the following hypothetical Case Study and answer the given questions:An accountant while balancing his books on 31st December 2016 found that there was a difference of ₹270 in the trial balance. Being required to prepare the final accounts he placed the difference to a newly opened Suspense A/c, which was carried forward to the next year when the following errors were discovered: Salary for the month of March was posted twice ₹155. Interest on investment collected by the bankers, were posted directly in concerned accounts through the pass book, but no entry was made in the bank column of the cash book ₹75. Rent of ₹350 received from Ashok credited both to Rent Account and Ashok Account. A purchase of a chair from Karnal Furniture Mart for ₹65 has been entered in the purchase book as ₹56. Old Machinery sold to the proprietor Keshav for ₹400 was entered in the Sales Book as sale to Kishore. Cash Purchases from Ajay ₹189 were recorded in Cash Book as well as in Purchases Book and posted from both. Closing Stock has been undervalued by ₹300. The Profit & Loss Account disclosed a net profit of ₹15,000 for the year ended 31st March 2016. Q. What will be the rectification entry of the salary for the month of march posted twice?

Read the following hypothetical Case Study and answer the given questions:An accountant while balancing his books on 31st December 2016 found that there was a difference of ₹270 in the trial balance. Being required to prepare the final accounts he placed the difference to a newly opened Suspense A/c, which was carried forward to the next year when the following errors were discovered: Salary for the month of March was posted twice ₹155. Interest on investment collected by the bankers, were posted directly in concerned accounts through the pass book, but no entry was made in the bank column of the cash book ₹75. Rent of ₹350 received from Ashok credited both to Rent Account and Ashok Account. A purchase of a chair from Karnal Furniture Mart for ₹65 has been entered in the purchase book as ₹56. Old Machinery sold to the proprietor Keshav for ₹400 was entered in the Sales Book as sale to Kishore. Cash Purchases from Ajay ₹189 were recorded in Cash Book as well as in Purchases Book and posted from both. Closing Stock has been undervalued by ₹300. The Profit & Loss Account disclosed a net profit of ₹15,000 for the year ended 31st March 2016. Q. What will be the journal entry for the balance of Profit and Loss Adjustment Account?

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An old furniture was sold for Rs 450 but the amount has been entered in sale day book as Rs.540. on rectification of this error suspense account will be​?
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An old furniture was sold for Rs 450 but the amount has been entered in sale day book as Rs.540. on rectification of this error suspense account will be​? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about An old furniture was sold for Rs 450 but the amount has been entered in sale day book as Rs.540. on rectification of this error suspense account will be​? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An old furniture was sold for Rs 450 but the amount has been entered in sale day book as Rs.540. on rectification of this error suspense account will be​?.
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