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Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration?
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Goods of the value of ₹2,500 returned by a customer were entered in th...
Rectification Entry for Goods Returned by Customer
Goods worth ₹2,500 returned by a customer were mistakenly entered in the Sales day Book and posted to the credit of his account. To rectify this error, a journal entry needs to be made using a suspense account.
- Suspense Account: A suspense account is used to temporarily hold entries that cannot be accurately classified to a specific account. It helps in rectifying errors and balancing the books.
Rectification Entry
- Debit Customer's Account: ₹2,500
- Credit Suspense Account: ₹2,500
Narration
"To rectify the error of goods returned by the customer, ₹2,500 wrongly entered in the Sales day Book and posted to his account, a rectification entry has been passed debiting the customer's account and crediting the suspense account."
This rectification entry ensures that the customer's account is properly adjusted for the goods returned and the sales records are accurately reflected in the books of accounts. The suspense account will hold the amount temporarily until the error is rectified, ensuring the balance sheet remains in balance.
Goods worth ₹2,500 returned by a customer were mistakenly entered in the Sales day Book and posted to the credit of his account. To rectify this error, a journal entry needs to be made using a suspense account.
- Suspense Account: A suspense account is used to temporarily hold entries that cannot be accurately classified to a specific account. It helps in rectifying errors and balancing the books.
Rectification Entry
- Debit Customer's Account: ₹2,500
- Credit Suspense Account: ₹2,500
Narration
"To rectify the error of goods returned by the customer, ₹2,500 wrongly entered in the Sales day Book and posted to his account, a rectification entry has been passed debiting the customer's account and crediting the suspense account."
This rectification entry ensures that the customer's account is properly adjusted for the goods returned and the sales records are accurately reflected in the books of accounts. The suspense account will hold the amount temporarily until the error is rectified, ensuring the balance sheet remains in balance.
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Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration?
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Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration? 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 Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration?.
Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration? 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 Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods of the value of ₹2,500 returned by a customer were entered in the Sales day Book and posted therefrom to the credit of his account. rectification entry with suspense account and narration?.
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