CA Foundation Exam > CA Foundation Questions > A cheque of Rs. 1,000 received from Ramesh wa...
Start Learning for Free
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:
- a)Sales return A/c Dr. 1,000
To Ramesh 1,000 - b)Ramesh A/c Dr. 1,000
To sales return A/c 1,000 - c)Sales return A/c Dr. 1,000
To Suspense A/c 1,000 - d)None of these
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been...
Rectification of Dishonored Cheque
Rectifying a dishonored cheque involves reversing the original entry that was made when the cheque was deposited. The correct entry will depend on the reason for the dishonor, but in this case, the cheque was dishonored and posted to the debit of sales return account. The rectifying journal entry will be as follows:
Rectifying Journal Entry:
Ramesh A/c Dr. 1,000
To Sales Return A/c 1,000
Explanation:
The rectifying journal entry will involve debiting Ramesh's account and crediting the sales return account. This is because the original entry was made by debiting sales return account and crediting Ramesh's account when the cheque was deposited. Now, since the cheque has been dishonored, the entry needs to be reversed to reflect the correct accounts.
Option A is incorrect because it involves debiting sales return account again, which has already been debited in the original entry.
Option C is incorrect because it involves crediting suspense account, which is not required in this case as there is no uncertainty or error in the accounts.
Option D is incorrect because none of the above options are correct.
Conclusion:
Thus, the correct rectifying journal entry for a dishonored cheque posted to the debit of sales return account is to debit Ramesh's account and credit sales return account.
Rectifying a dishonored cheque involves reversing the original entry that was made when the cheque was deposited. The correct entry will depend on the reason for the dishonor, but in this case, the cheque was dishonored and posted to the debit of sales return account. The rectifying journal entry will be as follows:
Rectifying Journal Entry:
Ramesh A/c Dr. 1,000
To Sales Return A/c 1,000
Explanation:
The rectifying journal entry will involve debiting Ramesh's account and crediting the sales return account. This is because the original entry was made by debiting sales return account and crediting Ramesh's account when the cheque was deposited. Now, since the cheque has been dishonored, the entry needs to be reversed to reflect the correct accounts.
Option A is incorrect because it involves debiting sales return account again, which has already been debited in the original entry.
Option C is incorrect because it involves crediting suspense account, which is not required in this case as there is no uncertainty or error in the accounts.
Option D is incorrect because none of the above options are correct.
Conclusion:
Thus, the correct rectifying journal entry for a dishonored cheque posted to the debit of sales return account is to debit Ramesh's account and credit sales return account.
Free Test
FREE
| Start Free Test |
Community Answer
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been...
The situation described involves a cheque for Rs. 1,000 received from Ramesh that was dishonored, and the incorrect entry was made by debiting the Sales Return account. This is incorrect because a dishonored cheque should impact the accounts receivable or a specific dishonored cheque account, not the Sales Return account.
Correcting the Error:
- Sales Return Account was incorrectly debited. This account is used to record returns of goods by customers, which reduces revenue. It is incorrect to use this account for a dishonored cheque.
- Ramesh’s Account (Accounts Receivable) should reflect the fact that the payment was not received, hence it needs to be debited to increase the amount owed by Ramesh back to its original status before the cheque was assumed to have cleared.
Correct Journal Entry:
- Debit Ramesh’s Account (Accounts Receivable): This increases the receivable indicating that the amount is still owed by Ramesh as the cheque was dishonored.
- Credit Sales Return Account: This reverses the incorrect debit entry to the Sales Return account, rectifying the error that implied a return of goods had occurred when, in fact, it was a dishonored payment.
Choice B: Ramesh A/c Dr. 1,000 To sales return A/c 1,000
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer?
Question Description
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. 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 A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. 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 A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. 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 A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. 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 A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer?.
Solutions for A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. 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 A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A cheque of Rs. 1,000 received from Ramesh was dishonored and had been posted to the debit of sales return account. Rectifying journal entry will be:a)Sales return A/c Dr. 1,000 To Ramesh 1,000b)Ramesh A/c Dr. 1,000 To sales return A/c 1,000c)Sales return A/c Dr. 1,000 To Suspense A/c 1,000d)None of theseCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup