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What is the rectify entry of : repairs were debited to building account Rs 4000 ?
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What is the rectify entry of : repairs were debited to building accoun...
Rectify Entry for Repairs Debited to Building Account Rs 4000
Repair expenses are generally debited to the building account as it is considered a part of the maintenance cost of the building. However, if repairs are incorrectly debited to the building account, it can lead to an inaccurate balance sheet and income statement. In this case, the rectify entry for repairs debited to the building account Rs 4000 can be made as follows:
By following these steps, the rectify entry for repairs debited to building account Rs 4000 can be made correctly, ensuring that the financial statements are accurate and reliable.
Repair expenses are generally debited to the building account as it is considered a part of the maintenance cost of the building. However, if repairs are incorrectly debited to the building account, it can lead to an inaccurate balance sheet and income statement. In this case, the rectify entry for repairs debited to the building account Rs 4000 can be made as follows:
- Reverse the Incorrect Entry: The first step in rectifying the entry is to reverse the incorrect entry. In this case, the entry would be reversed by crediting the building account and debiting the repairs account.
- Create a New Entry: Once the incorrect entry has been reversed, a new entry can be made to correctly record the repairs expense. The repairs account should be debited and the cash or accounts payable account should be credited, depending on whether the repairs were paid for in cash or on credit.
- Adjust the Building Account: After the new entry has been made, the building account should be adjusted to reflect the correct balance. The building account should be debited for the amount of the repairs expense that was incorrectly debited to the account, and credited for the amount of the repairs expense that was correctly debited to the repairs account.
- Review the Financial Statements: Finally, the financial statements should be reviewed to ensure that the corrections have been properly recorded. The corrected balance sheet and income statement should reflect the accurate amounts for the building account and repairs expense.
By following these steps, the rectify entry for repairs debited to building account Rs 4000 can be made correctly, ensuring that the financial statements are accurate and reliable.
Community Answer
What is the rectify entry of : repairs were debited to building accoun...
Repairs a/c dr
to building a/c
bcz building a/c i s debited bfr thats why we will credit it and repairs eill be debited
to building a/c
bcz building a/c i s debited bfr thats why we will credit it and repairs eill be debited
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What is the rectify entry of : repairs were debited to building account Rs 4000 ?
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What is the rectify entry of : repairs were debited to building account Rs 4000 ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the rectify entry of : repairs were debited to building account Rs 4000 ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the rectify entry of : repairs were debited to building account Rs 4000 ?.
What is the rectify entry of : repairs were debited to building account Rs 4000 ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the rectify entry of : repairs were debited to building account Rs 4000 ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the rectify entry of : repairs were debited to building account Rs 4000 ?.
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