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The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:
- a)Debited by Rs. 180
- b)Credited by Rs. 180
- c)Debited by Rs. 1080
- d)Credited by Rs. 1080
Correct answer is option 'B'. Can you explain this answer?
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The goods sold for Rs. 900 but the amount was entered in the sales Acc...
Rectification of Error in Accounting
Rectification of errors is an important aspect of accounting. It involves identifying and correcting errors made in the books of accounts. There are two types of errors in accounting:
1. Clerical errors: These are errors made due to mistakes in recording transactions. They can be corrected by making the necessary adjustments in the books of accounts.
2. Substantive errors: These are errors that affect the financial statements. They require a more detailed analysis to correct.
In this question, we are given that the goods were sold for Rs. 900 but the amount was entered in the sales account as Rs. 1080. This is a clerical error and can be rectified by making the necessary adjustment in the books of accounts.
Suspense Account
A suspense account is a temporary account used to hold transactions that cannot be immediately identified. It is created when there is uncertainty about the correct accounting treatment for a transaction. The transactions are then later identified and transferred to their appropriate accounts.
In this question, the difference between the amount sold and the amount recorded in the sales account is Rs. 180. This amount needs to be transferred to the correct account. Since the amount was recorded in excess, the suspense account needs to be credited with Rs. 180.
Answer
Therefore, the correct answer is option 'B' - Suspense account will be credited by Rs. 180.
Rectification of errors is an important aspect of accounting. It involves identifying and correcting errors made in the books of accounts. There are two types of errors in accounting:
1. Clerical errors: These are errors made due to mistakes in recording transactions. They can be corrected by making the necessary adjustments in the books of accounts.
2. Substantive errors: These are errors that affect the financial statements. They require a more detailed analysis to correct.
In this question, we are given that the goods were sold for Rs. 900 but the amount was entered in the sales account as Rs. 1080. This is a clerical error and can be rectified by making the necessary adjustment in the books of accounts.
Suspense Account
A suspense account is a temporary account used to hold transactions that cannot be immediately identified. It is created when there is uncertainty about the correct accounting treatment for a transaction. The transactions are then later identified and transferred to their appropriate accounts.
In this question, the difference between the amount sold and the amount recorded in the sales account is Rs. 180. This amount needs to be transferred to the correct account. Since the amount was recorded in excess, the suspense account needs to be credited with Rs. 180.
Answer
Therefore, the correct answer is option 'B' - Suspense account will be credited by Rs. 180.
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The goods sold for Rs. 900 but the amount was entered in the sales Acc...
Sales A/C Debited 180 TO Suspenes AC 180
because sales A/C amount inceress then suspense A/C is open
because sales A/C amount inceress then suspense A/C is open
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The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer?
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The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. 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 The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. 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 The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer?.
The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. 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 The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. 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 The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer?.
Solutions for The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The goods sold for Rs. 900 but the amount was entered in the sales Account as Rs. 1080. On Rectification, suspense account will be:a)Debited by Rs. 180b)Credited by Rs. 180c)Debited by Rs. 1080d)Credited by Rs. 1080Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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