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Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.
- a)Journal Proper (General journal)
- b)Sales Book
- c)Cash Book
- d)Purchase book
Correct answer is option 'A'. Can you explain this answer?
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 re...
The rectifying entry will be made in Journal proper to rectify the error of posting in wrong account.
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 re...
Rectifying Entry for the Mistake in Credit Purchase Recorded as Credit Sale to Mr. X
The mistake in recording a credit purchase of goods worth Rs 10000 as credit sale to Mr. X needs to be rectified by making a journal entry. The journal entry will ensure that the books of accounts are corrected and the financial statements reflect accurate information. The rectifying entry is as follows:
Journal Proper (General Journal)
Date: DD/MM/YYYY
Particulars | Debit | Credit
--- | --- | ---
Mr. X (Accounts Receivable) | 10,000 |
Purchase (Expense) | | 10,000
Explanation:
- Mr. X (Accounts Receivable) is debited to reverse the credit sale that was recorded earlier.
- Purchase (Expense) is credited to record the actual purchase of goods made on credit.
Importance of Making Rectifying Entry in Journal Proper
- Journal Proper or General Journal is used to record non-routine and adjusting transactions that cannot be recorded in other subsidiary books.
- The rectifying entry is a correcting entry that is made to rectify an error or mistake in the books of accounts.
- Making a rectifying entry in the Journal Proper ensures that the accounts are adjusted for the mistake and the financial statements reflect accurate information.
- The rectifying entry helps in maintaining the integrity of the books of accounts and ensures compliance with accounting standards and principles.
Conclusion
In conclusion, the mistake in recording a credit purchase of goods worth Rs 10000 as credit sale to Mr. X needs to be rectified by making a journal entry in the Journal Proper. The rectifying entry ensures that the accounts are adjusted for the mistake and the financial statements reflect accurate information.
The mistake in recording a credit purchase of goods worth Rs 10000 as credit sale to Mr. X needs to be rectified by making a journal entry. The journal entry will ensure that the books of accounts are corrected and the financial statements reflect accurate information. The rectifying entry is as follows:
Journal Proper (General Journal)
Date: DD/MM/YYYY
Particulars | Debit | Credit
--- | --- | ---
Mr. X (Accounts Receivable) | 10,000 |
Purchase (Expense) | | 10,000
Explanation:
- Mr. X (Accounts Receivable) is debited to reverse the credit sale that was recorded earlier.
- Purchase (Expense) is credited to record the actual purchase of goods made on credit.
Importance of Making Rectifying Entry in Journal Proper
- Journal Proper or General Journal is used to record non-routine and adjusting transactions that cannot be recorded in other subsidiary books.
- The rectifying entry is a correcting entry that is made to rectify an error or mistake in the books of accounts.
- Making a rectifying entry in the Journal Proper ensures that the accounts are adjusted for the mistake and the financial statements reflect accurate information.
- The rectifying entry helps in maintaining the integrity of the books of accounts and ensures compliance with accounting standards and principles.
Conclusion
In conclusion, the mistake in recording a credit purchase of goods worth Rs 10000 as credit sale to Mr. X needs to be rectified by making a journal entry in the Journal Proper. The rectifying entry ensures that the accounts are adjusted for the mistake and the financial statements reflect accurate information.
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 re...
Rectifying or adjustment entries are recorded in journal proper
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.a)Journal Proper (General journal)b)Sales Bookc)Cash Bookd)Purchase bookCorrect answer is option 'A'. Can you explain this answer?
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.a)Journal Proper (General journal)b)Sales Bookc)Cash Bookd)Purchase bookCorrect answer is option 'A'. 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 Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.a)Journal Proper (General journal)b)Sales Bookc)Cash Bookd)Purchase bookCorrect answer is option 'A'. 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 Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.a)Journal Proper (General journal)b)Sales Bookc)Cash Bookd)Purchase bookCorrect answer is option 'A'. Can you explain this answer?.
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