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Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry?
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Goods sold to x for Rs 750 were recorded in purchase book, make a rect...
Rectifying Entry for Goods Sold to X for Rs 750
When goods are sold to a customer, the transaction should be recorded in the sales book. However, in this case, the goods sold to X for Rs 750 were recorded in the purchase book which is an error.
Rectifying Entry:
To rectify this error, the following entry should be made:
- Debit Sales Account with Rs 750
- Credit X Account with Rs 750
This entry will transfer the record of goods sold to X from the purchase book to the sales book where it should have been recorded in the first place.
Explanation:
The purchase book is used to record purchases made by the business. When goods are sold, the transaction should be recorded in the sales book. This is because the sales book is used to record all sales made by the business. This ensures that the business has an accurate record of all sales made and can use this information to calculate profits, prepare financial statements, and file tax returns.
Recording the sale of goods in the purchase book is an error because it can lead to inaccurate financial statements and tax returns. This is because the purchase book is used to record expenses, not revenue. If a sale is recorded in the purchase book, it will be classified as an expense, which can lead to lower profits and higher tax liabilities.
Therefore, it is important to ensure that all transactions are recorded in the correct book of accounts to avoid errors and ensure accurate financial reporting.
Community Answer
Goods sold to x for Rs 750 were recorded in purchase book, make a rect...
The rectifying entry is: ...... X Dr. 1500 ...... To sales a/c. 750...... To purchase a/c. 750.....
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Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry?
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Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry?.
Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods sold to x for Rs 750 were recorded in purchase book, make a rectified entry?.
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