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 ‘A’ sold goods to ‘B’ on credit for Rs. 15,000 but debited to ‘C’ instead of ‘B’. The entry would affect:
  • a)
    Trial Balance
  • b)
    Individual Ledgers
  • c)
    Balance Sheet
  • d)
    Total Debtors
Correct answer is option 'B'. Can you explain this answer?
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‘A’ sold goods to ‘B’ on credit for Rs. 15,000...
Individual Ledgers
While there are several bookkeeping systems employed by banks, they are all alike in principle and vary only because the business of the customers warrants different labor-saving methods on the part of the bank. For example, active commercial accounts require considerable posting of checks and deposit tickets daily and the balances are constantly changing. Savings banks, on the other hand, deal with a class of people who make deposits only at irregular intervals and withdrawals are also infrequent. We will discuss the methods usually employed in a commercial bank using the three-column, loose-leaf ledger.

The individual ledgers are the books upon which the detail records of the deposits are kept. 
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‘A’ sold goods to ‘B’ on credit for Rs. 15,000...
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‘A’ sold goods to ‘B’ on credit for Rs. 15,000 but debited to ‘C’ instead of ‘B’. The entry would affect:a)Trial Balanceb)Individual Ledgersc)Balance Sheetd)Total DebtorsCorrect answer is option 'B'. Can you explain this answer?
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