CA Foundation Exam  >  CA Foundation Questions  >  A cheque for 100 rupees received from mohan w... Start Learning for Free
A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry?
Most Upvoted Answer
A cheque for 100 rupees received from mohan was dishonoured and had be...
Rectifying Entry for Dishonored Cheque

To rectify the dishonored cheque received from Mohan, a rectifying entry needs to be passed. The rectifying entry will reverse the previous entry made when the cheque was dishonored and adjust the accounts accordingly.

Step 1: Identify the Accounts Involved
In this case, the accounts involved are:
1. Sales Return Account - This account was debited with the amount of the dishonored cheque (100 rupees).
2. Mohan's Account - This account was credited when the cheque was initially received.

Step 2: Reverse the Previous Entry
To rectify the dishonored cheque, we need to reverse the previous entry made. This can be done by passing the following journal entry:

Sales Return Account Dr. 100 rupees
To Mohan's Account 100 rupees

This entry will debit the Sales Return Account and credit Mohan's Account with the same amount of 100 rupees, effectively reversing the initial entry.

Step 3: Explain the Rectifying Entry
The rectifying entry adjusts the accounts involved and reflects the dishonored cheque appropriately. By debiting the Sales Return Account and crediting Mohan's Account, the reversal of the previous entry is recorded. This ensures that the financial statements are accurate and reflect the true state of affairs.

The Sales Return Account is debited because the dishonored cheque represents a sales return that was previously credited. By debiting the account, the sales return is reversed and the balance is adjusted accordingly.

Mohan's Account is credited to reverse the initial credit made when the cheque was received. This ensures that the account accurately reflects the non-payment of the cheque and its impact on the business.

Conclusion
Passing the rectifying entry for the dishonored cheque involves reversing the previous entry made and adjusting the accounts involved. By debiting the Sales Return Account and crediting Mohan's Account, the reversal is recorded and the accounts are adjusted accordingly. This rectifying entry ensures that the financial statements reflect the true state of affairs.
Community Answer
A cheque for 100 rupees received from mohan was dishonoured and had be...
Mohan A/c Dr 100
To Sales Returns A/c. 100

Mohan A/c must be debited as it was omitted to Debi, And Sales Returns A/c must be credited as it was wrongly debited.
Explore Courses for CA Foundation exam
A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry?
Question Description
A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? 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 for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry?.
Solutions for A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? 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 for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? defined & explained in the simplest way possible. Besides giving the explanation of A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry?, a detailed solution for A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? has been provided alongside types of A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? theory, EduRev gives you an ample number of questions to practice A cheque for 100 rupees received from mohan was dishonoured and had been posted to the debit of sales return account,. Pass the rectifying entry? 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