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Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.
- a)Journal Proper (General journal)
- b)Sales Book
- c)Cash Book
- d)Purchase book
Correct answer is option 'A'. Can you explain this answer?
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 re...
Rectification of Credit Purchase Recorded as Credit Sale
Journal proper (General journal) is used to rectify errors in accounting records. The rectification of credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D is done as follows:
a) Journal Proper:
Date | Particulars | L.F. | Debit | Credit
--- | --- | --- | --- | ---
[Date of rectification] | Mr. D A/c | Dr. | 10,000 |
| To Purchase A/c | | | 10,000 |
Explanation: In this entry, we debit Mr. D's account with Rs. 10,000 to reduce the amount due from him for the credit sale of goods. At the same time, we credit Purchase account with Rs. 10,000 to rectify the error of recording the credit purchase as a credit sale.
b) Sales Book:
The sales book is not relevant in this case as the transaction was a credit purchase recorded as a credit sale.
c) Cash Book:
The cash book is not relevant in this case as the transaction was a credit purchase recorded as a credit sale.
d) Purchase Book:
The purchase book is relevant in this case as the transaction was a credit purchase. However, since the error has been rectified through the journal entry mentioned above, there is no need to make any entry in the purchase book.
Conclusion:
The rectification of the error of a credit purchase of goods worth Rs. 10,000 recorded as a credit sale to Mr. D is done through a journal entry in the journal proper. The entry debits Mr. D's account and credits the Purchase account. The sales book and cash book are not relevant in this case, and there is no need to make any entry in the purchase book.
Journal proper (General journal) is used to rectify errors in accounting records. The rectification of credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D is done as follows:
a) Journal Proper:
Date | Particulars | L.F. | Debit | Credit
--- | --- | --- | --- | ---
[Date of rectification] | Mr. D A/c | Dr. | 10,000 |
| To Purchase A/c | | | 10,000 |
Explanation: In this entry, we debit Mr. D's account with Rs. 10,000 to reduce the amount due from him for the credit sale of goods. At the same time, we credit Purchase account with Rs. 10,000 to rectify the error of recording the credit purchase as a credit sale.
b) Sales Book:
The sales book is not relevant in this case as the transaction was a credit purchase recorded as a credit sale.
c) Cash Book:
The cash book is not relevant in this case as the transaction was a credit purchase recorded as a credit sale.
d) Purchase Book:
The purchase book is relevant in this case as the transaction was a credit purchase. However, since the error has been rectified through the journal entry mentioned above, there is no need to make any entry in the purchase book.
Conclusion:
The rectification of the error of a credit purchase of goods worth Rs. 10,000 recorded as a credit sale to Mr. D is done through a journal entry in the journal proper. The entry debits Mr. D's account and credits the Purchase account. The sales book and cash book are not relevant in this case, and there is no need to make any entry in the purchase book.
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 re...
In cash book only cash related transactions are recorded
then in sales book only credit sales are recorded and in purchase book credit purchases.
the rectification entry is
purchases a/c. dr
to salesa/c
the above rectification entry is not related to any of the three books so it is recorded in the journal proper
in journal proper we record those transactions which does not fall under
a) cash book
b) purchase book
C) sales book
d) bills receivable book
e) biils payable book
f) purchase returns book and
g) sales return book
then in sales book only credit sales are recorded and in purchase book credit purchases.
the rectification entry is
purchases a/c. dr
to salesa/c
the above rectification entry is not related to any of the three books so it is recorded in the journal proper
in journal proper we record those transactions which does not fall under
a) cash book
b) purchase book
C) sales book
d) bills receivable book
e) biils payable book
f) purchase returns book and
g) sales return book
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Rectifying the error of a credit purchase of goods worth Rs. 10,000 recorded as credit sale to Mr. D, discovered two months later.a)Journal Proper (General journal)b)Sales Bookc)Cash Bookd)Purchase bookCorrect answer is option 'A'. Can you explain this answer?
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