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Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :
- a)Sallu A/c Dr. 10,000
To Sales A/c 10,000 - b)Sallu A/c Dr. 20,000
To Purchases A/c 20,000 - c)Sallu A/c Dr. 20,000
To Sales A/c 10,000
To Purchases A/c 10,000 - d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Credit sale of Rs. 10,000 made to Sallu was passed through purchase bo...
In this question,
Correct should have been:
Sallu a/c Dr 10,000
To sales a/c 10,000
However, the error commited is,
ie the wrong entry made is:
Purchase a/c Dr 10,000
To Sallu a/c 10,000
(To rectify the error, we reverse the wrong entry while we post the correct entry as it is)
Rectifying entry would be:
Sallu a/c-Dr 20,000 (10,000 of correct entry, and reversing the wrong entry of 10,000. so 10k+10k)
To Sales a/c 10,000 ( Correct entry)
To purchase a/c 10,000 ( Reversing the wrong entry).
Correct should have been:
Sallu a/c Dr 10,000
To sales a/c 10,000
However, the error commited is,
ie the wrong entry made is:
Purchase a/c Dr 10,000
To Sallu a/c 10,000
(To rectify the error, we reverse the wrong entry while we post the correct entry as it is)
Rectifying entry would be:
Sallu a/c-Dr 20,000 (10,000 of correct entry, and reversing the wrong entry of 10,000. so 10k+10k)
To Sales a/c 10,000 ( Correct entry)
To purchase a/c 10,000 ( Reversing the wrong entry).
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Community Answer
Credit sale of Rs. 10,000 made to Sallu was passed through purchase bo...
Explanation:
Background:
In this scenario, a credit sale of Rs. 10,000 was mistakenly passed through the purchase book instead of the sales book. As a result, the rectification entry needs to be recorded to correct the error.
Rectification Entry:
The proper entry for rectification would be as follows:
Sallu A/c Dr. 20,000
To Sales A/c 10,000
To Purchases A/c 10,000
Explanation of the Entry:
The rectification entry involves debiting Sallu's account, and crediting the Sales account and the Purchases account. Let's understand the reason behind each of these entries:
1. Debit to Sallu's Account (Sallu A/c Dr. 20,000):
- Since the credit sale of Rs. 10,000 was mistakenly passed through the purchase book, it needs to be reversed by debiting Sallu's account with the correct amount.
- The amount debited should be double the original credit sale amount because we are essentially reversing the previous incorrect entry and recording the correct entry.
2. Credit to Sales Account (To Sales A/c 10,000):
- The Sales account needs to be credited with the correct amount of the credit sale (Rs. 10,000) to reflect the revenue generated from the sale.
- This entry ensures that the sales account is not understated or omitted in the books.
3. Credit to Purchases Account (To Purchases A/c 10,000):
- The Purchases account needs to be credited with the same amount (Rs. 10,000) to reverse the incorrect entry made in the purchase book.
- This entry ensures that the purchases account is not overstated or affected by the credit sale.
Reason for Choosing Option 'C':
Among the given options, option 'C' correctly represents the rectification entry mentioned above, with Sallu's account being debited for Rs. 20,000 and the Sales account and Purchases account being credited for Rs. 10,000 each. Hence, option 'C' is the correct answer.
Background:
In this scenario, a credit sale of Rs. 10,000 was mistakenly passed through the purchase book instead of the sales book. As a result, the rectification entry needs to be recorded to correct the error.
Rectification Entry:
The proper entry for rectification would be as follows:
Sallu A/c Dr. 20,000
To Sales A/c 10,000
To Purchases A/c 10,000
Explanation of the Entry:
The rectification entry involves debiting Sallu's account, and crediting the Sales account and the Purchases account. Let's understand the reason behind each of these entries:
1. Debit to Sallu's Account (Sallu A/c Dr. 20,000):
- Since the credit sale of Rs. 10,000 was mistakenly passed through the purchase book, it needs to be reversed by debiting Sallu's account with the correct amount.
- The amount debited should be double the original credit sale amount because we are essentially reversing the previous incorrect entry and recording the correct entry.
2. Credit to Sales Account (To Sales A/c 10,000):
- The Sales account needs to be credited with the correct amount of the credit sale (Rs. 10,000) to reflect the revenue generated from the sale.
- This entry ensures that the sales account is not understated or omitted in the books.
3. Credit to Purchases Account (To Purchases A/c 10,000):
- The Purchases account needs to be credited with the same amount (Rs. 10,000) to reverse the incorrect entry made in the purchase book.
- This entry ensures that the purchases account is not overstated or affected by the credit sale.
Reason for Choosing Option 'C':
Among the given options, option 'C' correctly represents the rectification entry mentioned above, with Sallu's account being debited for Rs. 20,000 and the Sales account and Purchases account being credited for Rs. 10,000 each. Hence, option 'C' is the correct answer.
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Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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ample number of questions to practice Credit sale of Rs. 10,000 made to Sallu was passed through purchase book. The proper entry for rectification was the following :a)Sallu A/c Dr. 10,000 To Sales A/c 10,000b)Sallu A/c Dr. 20,000 To Purchases A/c 20,000c)Sallu A/c Dr. 20,000 To Sales A/c 10,000 To Purchases A/c 10,000d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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