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Receipt of cash *5,000 from Mr. Avinash was posted to the debit of his account. rectification entry?
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Receipt of cash *5,000 from Mr. Avinash was posted to the debit of his...
Rectification Entry for the Receipt of Cash from Mr. Avinash
To rectify the error of posting the cash receipt of 5,000 from Mr. Avinash to the debit of his account, a rectification entry needs to be made. This error resulted in an incorrect debit entry in Mr. Avinash's account.

Correcting the Error:
- Identify the correct account that should have been debited for the cash receipt.
- In this case, the correct account should be Cash Account.

Rectification Entry:
- Debit Cash Account by $5,000
- Credit Mr. Avinash's Account by $5,000

Explanation:
- By debiting the Cash Account, we are correcting the error of initially debiting Mr. Avinash's account.
- By crediting Mr. Avinash's account, we are reversing the incorrect debit entry made earlier.

Impact of the Rectification Entry:
- The rectification entry ensures that the correct accounts reflect the transaction accurately in the books of accounts.
- It rectifies the error and ensures that the financial statements are presented correctly.
By making the above rectification entry, the error of posting the cash receipt from Mr. Avinash to the debit of his account will be corrected, and the accounts will reflect the transaction accurately.
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Receipt of cash *5,000 from Mr. Avinash was posted to the debit of his account. rectification entry?
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Receipt of cash *5,000 from Mr. Avinash was posted to the debit of his account. rectification 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 Receipt of cash *5,000 from Mr. Avinash was posted to the debit of his account. rectification entry? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Receipt of cash *5,000 from Mr. Avinash was posted to the debit of his account. rectification entry?.
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