Question

An old furniture was sold for Rs.650, but the amount entered in Sales Day Book as Rs. 560. On rectification of this error Furniture A/c will be _____.

• A. Credited by Rs.650
• B. Debited by Rs.550
• C. Credited by Rs.110
• D. Debited by Rs.90

Answer 1

The correct option is A Credited by Rs.650

The rectification entry will be:

Sales A/c ...............Dr. 560

Suspense A/c.........Dr. 90

To Furniture A/c 650

(Being furniture sold wrongly entered in Sales book)

Here, on the sale of furniture, we need to credit the Furniture account as it is going out. But, as it was wrongly entered in the Sales book as Rs. 560 we will debit the sales account by this amount and the difference is debited to the Suspense A/c.

Thus, option A is correct.