An amount of Rs $15, 000$ withdrawn by the proprietor for his personal use has been debited to Trade Expenses Account. Which of the following rectification entry is correct?

Drawings A/c Dr.

15, 000

To Suspense A/c

15, 000

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Trade Expenses A/c Dr.

15, 000

To Suspense A/c

15, 000

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Drawings A/c Dr.

15, 000

To Trade Expenses A/c

15, 000

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Trade Expenses A/c Dr.

15, 000

To P & L Adj. A/c

15, 000

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Solution

The correct option is D Drawings A/c Dr. $15, 000$
To Trade Expenses A/c $15, 000$
Correct entry :-
Drawings account ......... Dr 15,000
To cash A/c 15,000

Wrong entry:-
Trade expenses A/c ..........Dr 15,000
To Cash A/c 15,000

Rectification entry:-
Drawings A/c ..............Dr 15,000
To Trade expenses A/c 15,000
As the trade expenses account was wrongfully debited its to be credited and drawing account has to be debited.

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Similar questions

Q. Journal entry for transfer of direct expenses is __________.
Trading A/c Dr.
To Direct Expenses A/c

Rectify the following errors:

(i) Repairs made on Building for Rs 1,00,000 were debited to Building a/c.
(ii) Rent paid Rs 12,000 to Landlord was debited to Landlord a/c.
(iii) Wages paid for installation of Machinery of Rs 7,000 was debited to Wages a/c.
(iv) Salary paid to Accountant (Mr. Ram) on Rs 15,000 was debited to Ram a/c.
(v) Rs 32,000 paid for purchase of Computer was charged to Office Expenses a/c.
(vi) Amount of Rs 7,500 withdrawn by proprietor for personal use was debited to Miscellaneous Expenses a/c.

Q. A balance of trade deficit of Rs.15,000 implies ________.

Q. A balance of trade surplus of Rs.15,000 implies _______.

A firm earns a revenue of Rs.21,000 and the expenses to earn this revenue are Rs.15,000.Calculate its income.

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An amount of Rs15,000 withdrawn by the proprietor for his personal use has been debited to Trade Expenses Account. Which of the following rectification entry is correct?

An amount of Rs $15, 000$ withdrawn by the proprietor for his personal use has been debited to Trade Expenses Account. Which of the following rectification entry is correct?