Rectifying Journal Entry for ₹300

Background: Ajit's account for ₹300 was written off earlier and posted to the credit of Rahul's account.

Step 1: Identify the error in the original journal entry. In this case, the error was that Ajit's account was written off, but the credit was posted to Rahul's account.

Step 2: Determine the correct journal entry that should have been made. In this case, the correct entry should have been to credit Ajit's account and debit the account that the ₹300 was written off from.

Step 3: Create the rectified journal entry to correct the error. The entry would be:

Debit Account Written Off a/c ₹300

Credit Ajit's Account ₹300

This journal entry would correct the error by debiting the account that was written off for ₹300 and crediting Ajit's account for the same amount.

Step 4: Post the rectified journal entry to the ledger accounts. The debit of ₹300 would be posted to the account that was written off, and the credit of ₹300 would be posted to Ajit's account.

Conclusion: By following the above steps, the error in the original journal entry has been rectified, and the correct entries have been made in the ledger accounts. It is important to correct errors in accounting records promptly to ensure accurate financial reporting and decision-making.

(1) bad debts recovered written off earlierAjit A/c Dr Rs 300To Bad Debt Recovered A/c Rs 300(2) bad debts wrongly credited Rahul A/c Dr Rs 300 To Bad Debt A/c Rs 300