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If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the
- a)trial balance would show the debit side to be Rs.1,000 more than the credit
- b)trial balance would show the credit side to be Rs.1,000 more than the debit
- c)the debit side of the trial balance will be Rs.2,000 more than the credit side
- d)the credit side of the trial balance will be Rs.2,000 more than the debit side
Correct answer is option 'C'. Can you explain this answer?
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If a purchase return of Rs.1,000 has been wrongly posted to the debit ...
Trial Balance and Its Impact on Wrong Posting
Trial Balance:
Trial balance is a statement of debit and credit balances extracted from ledger accounts on a particular date, with the intention of checking the accuracy of the arithmetical correctness of the books of accounts. It is the first step in the preparation of financial statements, and it helps in identifying any errors or omissions in the accounting records.
Impact of Wrong Posting on Trial Balance:
When a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers account, the impact on the trial balance is as follows:
- Debit side of the trial balance will be Rs.2,000 more than the credit side.
- Sales return account will be overstated by Rs.1,000.
- Purchases account will be understated by Rs.1,000.
- Creditors account will be understated by Rs.1,000.
Explanation:
The purchase return of Rs.1,000 has been wrongly posted to the debit side of the sales returns account. Hence, the sales return account will be overstated by Rs.1,000. At the same time, the purchases account will be understated by Rs.1,000 because the purchase return has not been posted to the correct account. As the purchases account is understated, the creditors account, which is a personal account, will also be understated by Rs.1,000.
Due to this error, the debit side of the trial balance will be Rs.1,000 more than the credit side, because the purchase return has been wrongly debited to the sales return account. Additionally, the sales return account will show a higher balance, and the purchases account and creditors account will show lower balances.
To correct this error, the purchase return of Rs.1,000 needs to be transferred from the sales returns account to the purchases account. This can be done by passing a journal entry to debit purchases account and credit sales returns account.
In conclusion, it is important to ensure that the correct accounts are debited and credited while making entries in the books of accounts to avoid errors that can impact the trial balance and financial statements.
Trial Balance:
Trial balance is a statement of debit and credit balances extracted from ledger accounts on a particular date, with the intention of checking the accuracy of the arithmetical correctness of the books of accounts. It is the first step in the preparation of financial statements, and it helps in identifying any errors or omissions in the accounting records.
Impact of Wrong Posting on Trial Balance:
When a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers account, the impact on the trial balance is as follows:
- Debit side of the trial balance will be Rs.2,000 more than the credit side.
- Sales return account will be overstated by Rs.1,000.
- Purchases account will be understated by Rs.1,000.
- Creditors account will be understated by Rs.1,000.
Explanation:
The purchase return of Rs.1,000 has been wrongly posted to the debit side of the sales returns account. Hence, the sales return account will be overstated by Rs.1,000. At the same time, the purchases account will be understated by Rs.1,000 because the purchase return has not been posted to the correct account. As the purchases account is understated, the creditors account, which is a personal account, will also be understated by Rs.1,000.
Due to this error, the debit side of the trial balance will be Rs.1,000 more than the credit side, because the purchase return has been wrongly debited to the sales return account. Additionally, the sales return account will show a higher balance, and the purchases account and creditors account will show lower balances.
To correct this error, the purchase return of Rs.1,000 needs to be transferred from the sales returns account to the purchases account. This can be done by passing a journal entry to debit purchases account and credit sales returns account.
In conclusion, it is important to ensure that the correct accounts are debited and credited while making entries in the books of accounts to avoid errors that can impact the trial balance and financial statements.
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If a purchase return of Rs.1,000 has been wrongly posted to the debit ...
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if it is added by mistake to sale's return A/C then, it will deduct 1000/- extra from Sales as it is on debit side of sales return it will be B/D as -Less Sale's written ₹1,000/- that will decrease the credit side! ---- 1
and as it is not deducted from the purchase it will give more ₹1,000/- to the Debit total! thus 1000+1000 will give you 2000 more from the Credit side ---- 2
if it is added by mistake to sale's return A/C then, it will deduct 1000/- extra from Sales as it is on debit side of sales return it will be B/D as -Less Sale's written ₹1,000/- that will decrease the credit side! ---- 1
and as it is not deducted from the purchase it will give more ₹1,000/- to the Debit total! thus 1000+1000 will give you 2000 more from the Credit side ---- 2
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If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer?
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If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. 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 If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. 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 If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer?.
If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. 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 If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. 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 If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer?.
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If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of thea)trial balance would show the debit side to be Rs.1,000 more than the creditb)trial balance would show the credit side to be Rs.1,000 more than the debitc)the debit side of the trial balance will be Rs.2,000 more than the credit sided)the credit side of the trial balance will be Rs.2,000 more than the debit sideCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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