Question

A credit sale of Rs$1,000$ to Santhanam has been wrongly passed through the purchases book. Which of the following rectification entry is correct?

• A. Suspense A/c Dr. $2,000$
  To Sales A/c $1,000$
  To Purchases A/c $1,000$
• B. Purchases A/c Dr $2,000$
  To Santhanam A/c $2,000$
• C. Santhanam A/c Dr. $2,000$
  To Sales A/c $1,000$
  To Purchases A/c $1,000$
• D. Sales A/c Dr. $1,000$
  Purchases A/c Dr. $1,000$
  To Santhanam A/c $2,000$

Answer 1

Answer: (C)

Santhanam A/c Dr. $2,000$

To Sales A/c $1,000$
To Purchases A/c $1,000$
This error will have double affect on trial balance as instead of credit to sales account, a debit is posted in purchase account. To rectify the error, following rectification entry need to be passed in books of account:

Santhanam A/c Dr. $2000$

To Sales A/c $1000$

To Purchase A/c $1000$