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Rectify the following entry:
An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand?
An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand?
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Rectify the following entry: An amount of ₹2000 due from Mahesh Chand ...
Rectification of Entry: Amount Due from Mahesh Chand
An amount of ₹2000 due from Mahesh Chand has been written off as a bad debt in the previous year. However, it was unexpectedly recovered and has been posted to the person account of Mahesh Chand. The entry needs to be rectified to reflect the correct accounting treatment.
Explanation:
The entry made previously to write off the amount due from Mahesh Chand as a bad debt was correct as per accounting principles. However, since the amount has been unexpectedly recovered, the entry needs to be rectified to reflect the correct accounting treatment. The following steps need to be taken:
- Reverse the Previous Entry: The previous entry to write off the amount as a bad debt needs to be reversed. This can be done by debiting the bad debts recovered account and crediting the bad debts written off account.
- Record the Recovery: The amount of ₹2000 recovered from Mahesh Chand needs to be recorded by debiting the cash account and crediting the person account of Mahesh Chand.
By following the above steps, the correct accounting treatment will be reflected in the books of accounts.
Conclusion:
Rectification of entries is important to ensure that the books of accounts reflect the correct financial position of the company. In this case, the entry made previously to write off the amount due from Mahesh Chand as a bad debt was correct. However, since the amount has been unexpectedly recovered, the entry needs to be rectified to reflect the correct accounting treatment. By reversing the previous entry and recording the recovery, the correct accounting treatment will be reflected in the books of accounts.
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Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand?
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Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand? 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 Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand?.
Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand? 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 Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rectify the following entry: An amount of ₹2000 due from Mahesh Chand which has been written of as a bad that in the previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand?.
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