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Sale of old furniture is erraneously entered in sales book. Rectification entry will be:
- a)Debit Sales A/c, Credit Furniture A/c
- b)Debit Furniture A/c, Credit Sales A/c
- c)Debit Debtor A/c, Credit Furniture A/c
- d)Debit Sales A/c, Credit Debtor A/c
Correct answer is option 'A'. Can you explain this answer?
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Sale of old furniture is erraneously entered in sales book. Rectificat...
Rectification Entry for Erroneously Entered Sale of Old Furniture
In this scenario, the sale of old furniture has been erroneously entered in the sales book. To rectify this error, a rectification entry needs to be made. The correct rectification entry in this case would be to debit the Sales account and credit the Furniture account.
Explanation:
1. Identify the error: The error in this case is that the sale of old furniture has been wrongly recorded in the sales book.
2. Analyze the impact of the error: The erroneous entry would have resulted in an overstatement of sales and an understatement of furniture.
3. Determine the rectification entry: To correct the error, we need to reverse the effect of the erroneous entry. This can be done by debiting the Sales account and crediting the Furniture account.
a) Debit Sales account: By debiting the Sales account, we are reducing the amount of sales recorded due to the erroneous entry.
b) Credit Furniture account: By crediting the Furniture account, we are increasing the value of the furniture which was understated due to the error.
4. Explanation of the rectification entry: The rectification entry debits the Sales account and credits the Furniture account. This means that the sales amount is reduced and added back to the furniture account.
a) Debit Sales account: The Sales account is a nominal account that records the revenue generated from the sale of goods or services. By debiting this account, we are reducing the sales amount that was erroneously recorded.
b) Credit Furniture account: The Furniture account is a real account that represents the value of furniture owned by the business. By crediting this account, we are increasing the value of the furniture which was previously understated.
5. Impact of the rectification entry: The rectification entry corrects the error by reversing the effect of the erroneous entry. It ensures that the sales amount is reduced and the value of furniture is increased in the books of accounts, thereby reflecting the correct financial position of the business.
In conclusion, the rectification entry for the erroneously entered sale of old furniture is to debit the Sales account and credit the Furniture account. This rectification entry corrects the error and ensures that the financial statements accurately reflect the true position of the business.
In this scenario, the sale of old furniture has been erroneously entered in the sales book. To rectify this error, a rectification entry needs to be made. The correct rectification entry in this case would be to debit the Sales account and credit the Furniture account.
Explanation:
1. Identify the error: The error in this case is that the sale of old furniture has been wrongly recorded in the sales book.
2. Analyze the impact of the error: The erroneous entry would have resulted in an overstatement of sales and an understatement of furniture.
3. Determine the rectification entry: To correct the error, we need to reverse the effect of the erroneous entry. This can be done by debiting the Sales account and crediting the Furniture account.
a) Debit Sales account: By debiting the Sales account, we are reducing the amount of sales recorded due to the erroneous entry.
b) Credit Furniture account: By crediting the Furniture account, we are increasing the value of the furniture which was understated due to the error.
4. Explanation of the rectification entry: The rectification entry debits the Sales account and credits the Furniture account. This means that the sales amount is reduced and added back to the furniture account.
a) Debit Sales account: The Sales account is a nominal account that records the revenue generated from the sale of goods or services. By debiting this account, we are reducing the sales amount that was erroneously recorded.
b) Credit Furniture account: The Furniture account is a real account that represents the value of furniture owned by the business. By crediting this account, we are increasing the value of the furniture which was previously understated.
5. Impact of the rectification entry: The rectification entry corrects the error by reversing the effect of the erroneous entry. It ensures that the sales amount is reduced and the value of furniture is increased in the books of accounts, thereby reflecting the correct financial position of the business.
In conclusion, the rectification entry for the erroneously entered sale of old furniture is to debit the Sales account and credit the Furniture account. This rectification entry corrects the error and ensures that the financial statements accurately reflect the true position of the business.
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Sale of old furniture is erraneously entered in sales book. Rectification entry will be:a)Debit Sales A/c, Credit Furniture A/cb)Debit Furniture A/c, Credit Sales A/cc)Debit Debtor A/c, Credit Furniture A/cd)Debit Sales A/c, Credit Debtor A/cCorrect answer is option 'A'. Can you explain this answer?
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