Question

Cash sales to Radhika Rs 15,000 was shown as receipt of commission in the cash book.
This is the error of ...........
State the wrong entry recorded in the book of accounts
Correct effect should have been
The rectification entry will be

Answer 1

Cash sales to Radhika Rs 15,000 was shown as receipt of commission in the cash book.
This is the error of Commission.
State the wrong entry recorded in the book of accounts.

Cash A/c Dr	15,000
To Commission A/c		15,000

Correct effect should have been

Cash A/c Dr	15,000
To Sales A/c		15,000

The rectification entry will be

Commission A/c Dr	15,000
To Sales A/c		15,000