Question

Cartage Rs$780$ paid on machinery newly acquired was debited to carriage inward account. If this error located after preparation of trial balance then which of the following rectification entry is correct?

• A. Machinery A/c Dr. $780$
  Carriage Inwards Dr. $780$
  To Profit & Loss Adj. A/c $1,560$
• B. Machinery A/c Dr. $780$
  To Carriage Inwards A/c Dr. $780$
• C. Suspense A/c Dr. $1,560$
  To Machinery A/c Dr. $780$
  To Carriage Inwards A/c $780$
• D. Carriage Inwards A/c Dr $900$
  To Machinery A/c Dr. $900$

Answer 1

The correct option is B Machinery A/c Dr. $780$

To Carriage Inwards A/c Dr. $780$

Correct entry :-

Machinery A/c ......... Dr 780

To Cash A/c 780

Wrong entry:-

Carriage inwards A/c .......Dr 780

To Cash A/c 780

Rectification entry:-

Machinery A/c ..............Dr 780

To Carriage inwards A/c 780

As carriage inwards account was wrongly debited instead of machinery account, carriage inwards will be credited and machinery account will be debited to rectify the mistake.