An amount of Rs 20,000 due from Mukesh was written off as bad debt in the previous year is now been recovered. It has been credited to Mukesh`s account. Is this correct? If no, which account should have been credited.

Yes, it is correct

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Bad debts account

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Bad Debts Recovered Account

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Purchases account

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Solution

The correct option is C
Bad Debts Recovered Account

Rectifying Entry shall be:
Cash A/c Dr Rs 20,000
To Bad Debts Recovered A/c Rs 20,000

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Q. Rs 1,000 received in cash from X (whose account was written off as a bad debt) credited to X's account. This error:

Q. Rs.1,000 received in cash from X( whose account was written off as a Bad Debt ) credited to X's Account . While rectifying this error:

Pass the journal entries to rectify the following errors detected during preparation of the trial balance.
(i) Purchase Book is undercast by Rs. 1,000
(ii) Wages paid for construction of office debited to wages account Rs. 20,000.
(iii) A credit sale of goods Rs. 1,200 to Ramesh has been wrongly passed through the purchases book.
(iv) Goods purchased for Rs. 5,000 were posted as Rs. 500 to the purchases Account.
(v) An amount of Rs. 2,000 due from Mahesh chand which had been written off as a bad debt in previous year was unexpectedly recovered has been posted to the personal account of Mahesh Chand.
(vi) A credit purchase of Rs. 1,040 from Ramesh was passed in the books as Rs. 1,400.
(vii) Goods (cost Rs. 5,000, sales price Rs. 6,000) distributed as free samples among prospective customers were not recorded anywhere.
(viii) Goods worth Rs. 1,500 returned by Green & Co. Have noit been recorded anywhere.

How would you rectify the following errors?

1) Sold goods worth Rs 7,200 to Sonu has been wrongly debited to Monu’s account.
2) A purchase of Rs 950 from Ali has been wrongly debited to his personal account.
3) Cash Rs 500 received from Gangaram and entered on the receipts side of the cash book has not been posted to Gangaram’s account.
4) An amount of Rs 1,500 drawn by the proprietor for his personal use stands debited to sundry expenses account.
5) A payment of Rs 800 made by Nanaji for cash purchase of goods from him stands debited to his personal account.

6) Rs 300 written off as bad debts last year and now recovered was credited to customer’s account.

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An amount of Rs 20,000 due from Mukesh was written off as bad debt in the previous year is now been recovered. It has been credited to Mukesh`s account. Is this correct? If no, which account should have been credited.

The correct option is C Bad Debts Recovered Account Rectifying Entry shall be: Cash A/c Dr Rs 20,000 To Bad Debts Recovered A/c Rs 20,000

The correct option is C
Bad Debts Recovered Account

Rectifying Entry shall be:
Cash A/c Dr Rs 20,000
To Bad Debts Recovered A/c Rs 20,000