Question

A purchase of goods from Nathan amounting to Rs$3,000$ has been wrongly entered in the Sales Book. However Nathan Account has been correctly credited. Which of the following rectification entry is correct?

• A. Sales A/c Dr. $3,000$
  To Nathan A/c $3,000$
• B. Purchases A/c Dr. $3,000$
  To Nathan A/c $3,000$
• C. Sales A/c Dr. $3,000$
  Purchases A/c Dr. $3,000$
  To Suspense A/c $6,000$
• D. Sales A/c Dr. $3,000$
  Purchases A/c Dr. $3,000$
  To Nathan A/c $6,000$

Answer 1

The correct option is C Sales A/c Dr. $3,000$

Purchases A/c Dr. $3,000$
To Suspense A/c $6,000$

Correct entry :-

purchase Account ......... Dr 3,000

To Nathan A/c 3,000

Wrong entry:-

Sales A/c Credited instead of Debiting purchase and correct entry in Nathan A/c

Suspense A/c .......................Dr 3,000

To Sales A/c 3,000

Rectification entry:-

Sales A/c ...............................Dr 3,000

Purchases A/c ......................Dr 3,000

To Suspense A/c 6,000

As sales account was wrongly credited instead of debiting purchase A/c, Sales A/c has to be debited and Purchase A/c also has to be debited. Also, suspense account has to be credited, Suspense account is to be created temporarily when the destination of the transaction cannot be understood.