Question

A credit sale of Rs. 870 was wrongly posted as 780 to the customer's account in the sales ledger. If this error located after preparation of final account then which of the following rectification entry is correct?

• A. Customer's A/c Dr. 90
  To Suspense A/c 90
• B. Suspense A/c Dr. 90
  To Customer's A/c 90
• C. Customer's A/c Dr. 90
  To Profit & Loss Adj. A/c 90
• D. Profit dc Loss Adj. A/c Dr. 90
  To Customer's A/c 90

Answer 1

The correct option is A Customer's A/c Dr. 90

To Suspense A/c 90
Clearly the error has only one sided effect i.e., only customer's account in sales ledger has wrong amount.

Customer's A/c will be debited to rectify and fulfill the deficit amount and suspense A/c is credited to complete double entry system.