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) A purchase of ₹6,700 had been posted to creditor's account as *6,000. rectification entry with suspense account and narration?
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) A purchase of ₹6,700 had been posted to creditor's account as *6,000...
Rectification Entry for Overposting to Creditor's Account
Rectifying an error in the posting of a purchase amount to a creditor's account involves adjusting the entry to reflect the correct amount. In this case, a purchase of ₹6,700 was mistakenly posted as ₹6,000.
Rectification Entry Using Suspense Account
- Debit Suspense Account: ₹700
- Credit Creditor's Account: ₹700
Narration
To rectify the error of overposting ₹6,000 instead of ₹6,700 to the creditor's account, a rectification entry is made by debiting the Suspense Account with the difference of ₹700 and crediting the Creditor's Account with the same amount.
This rectification entry ensures that the creditor's account reflects the correct purchase amount of ₹6,700, thereby maintaining the accuracy of the financial records. The Suspense Account is used temporarily to hold the discrepancy amount until it is identified and corrected.
By following the above rectification entry and using the Suspense Account, the error in the creditor's account posting can be corrected accurately, ensuring the integrity of the accounting records.
Rectifying an error in the posting of a purchase amount to a creditor's account involves adjusting the entry to reflect the correct amount. In this case, a purchase of ₹6,700 was mistakenly posted as ₹6,000.
Rectification Entry Using Suspense Account
- Debit Suspense Account: ₹700
- Credit Creditor's Account: ₹700
Narration
To rectify the error of overposting ₹6,000 instead of ₹6,700 to the creditor's account, a rectification entry is made by debiting the Suspense Account with the difference of ₹700 and crediting the Creditor's Account with the same amount.
This rectification entry ensures that the creditor's account reflects the correct purchase amount of ₹6,700, thereby maintaining the accuracy of the financial records. The Suspense Account is used temporarily to hold the discrepancy amount until it is identified and corrected.
By following the above rectification entry and using the Suspense Account, the error in the creditor's account posting can be corrected accurately, ensuring the integrity of the accounting records.
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) A purchase of ₹6,700 had been posted to creditor's account as *6,000. rectification entry with suspense account and narration?
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) A purchase of ₹6,700 had been posted to creditor's account as *6,000. 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 ) A purchase of ₹6,700 had been posted to creditor's account as *6,000. 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 ) A purchase of ₹6,700 had been posted to creditor's account as *6,000. rectification entry with suspense account and narration?.
) A purchase of ₹6,700 had been posted to creditor's account as *6,000. 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 ) A purchase of ₹6,700 had been posted to creditor's account as *6,000. 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 ) A purchase of ₹6,700 had been posted to creditor's account as *6,000. rectification entry with suspense account and narration?.
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