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 & 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 $90$
Posting of wrong amount in the customer's account is an error of commission. Since the error has affected a personal account, hence there will no affect on the profit & loss account. Rectification need to be done through suspense account.

Following rectification entry will be passed:

Customer's A/c Dr. 90

To Suspense A/c 90

(Short amount debited to customer a/c, now rectified)