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Question

A bill of Rs 20,000 for old office furniture sold to Sethi was entered in the Sales Day Book. Which of the following rectification entry is correct?

A
Suspense A/c Dr. 20,000
To Office Furniture A/c 20,000
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B
Sales A/c Dr. 20,000
To Office Furniture A/c 20,000
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C
Office Furniture A/c Dr. 20,000
To Suspense A/c 20,000
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D
Office Furniture A/c Dr. 20,000
To Sales A/c 20,000
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Solution

The correct option is B Sales A/c Dr. 20,000
To Office Furniture A/c 20,000
Its an error of principle as capital receipt is recorded as revenue receipt. Sales of an asset has to be recorded in the respective asset not to the trading sales.
Following rectification has to be passed:
Sales A/c Dr. 20000
To Office Furniture A/c 20000

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