Question

An amount of Rs$8,000$ received on account of interest was credited to Commission Account. Which of the following rectification entry is correct?

• A. Commission A/c Dr. $8,000$
  To Suspense A/c $8,000$
• B. Interest A/c Dr. $8,000$
  To Suspense A/c $8,000$
• C. Interest A/c Dr. $8,000$
  To Commission A/c $8,000$
• D. Commission A/c Dr. $8,000$
  To Interest A/c $8,000$

Answer 1

The correct option is D Commission A/c Dr. $8,000$

To Interest A/c $8,000$

Correct entry :-

Cash Account ......... Dr 15,000

To Interest A/c 15,000

Wrong entry:-

Cash A/c................. ..........Dr 15,000

To Commission A/c 15,000

Rectification entry:-

Commission A/c ..............Dr 15,000

To Interest A/c 15,000

As the commission account was wrongfully credited so its to be debited and Interest account has to be credited.