Rectification Of Errors - 1 - Commerce Accountancy Class 11 Free MCQ Test

Puchase of machinery is debited to machinery a/c but they debited it to purchase a/c in either of case in trial balance the machinery which is purchased itz amount will be debited only so there will be no difference in credit and debit side of trial balance. This error will just affect individual ledger

Correct answer: Option B.

If a nominal account has been overcredited, the excess must be removed by debiting that nominal account; the balancing entry is credited to the Suspense A/c.

Journal entry:

Sales A/c Dr. Rs.180

To Suspense A/c Rs.180

Hence, on rectification the Suspense A/c will be credited by Rs.180.

Correct option: D.

The receipt was posted to the debtor's personal account instead of being credited to the income account for recovery of a previously written-off debt. The cash/bank amount (recorded as Bank A/c Dr.) stands correctly recorded; the corrective action is to transfer the credit from the debtor's account to the income account.

To transfer that credit, debit the debtor's account and credit Bad Debts Recovered A/c for the recovered amount. This removes the incorrect credit in the debtor's ledger and recognises the recovery as income.

Rectification entry: Anshul A/c Dr. Rs. 6,000; To Bad Debts Recovered A/c Rs. 6,000