Consider the following statements:
A credit purchase during the accountancy year which was not recorded in the books of account but included in the closing stock is to be:
1. Added to the purchase account
2. Added to the creditor's account
3. Subtracted from the closing stock
4. Added to the opening stock
Which of the statements given above is/are correct?

3 only

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1 and 2

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2 and 3

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2, 3 and 4

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Solution

The correct option is B 1 and 2
Accounting entry for credit purchase will be as under:

Purchase A/c Dr.
To Creditors A/c

Hence, if the transaction is not recorded in the books of account, it has to be:
1. Added to purchase account
2. added to the creditors account.

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Similar questions

Q. Consider the following statements.
A credit purchase during the accounting year which was not recorded in the books of account but included in the closing stock is to be.
I. Added to the credit purchases account
II. Added to the creditors account
III. Subtracted from the closing stock
IV. Added to the opening stock
Which of the statements given is/are correct?

Rectify the following errors by opening a suspense account credit side of the trial balance was cast short and the difference of trial account.

1) Paid Rs 700 to Nishigandha was debited to pritigantha account.
2) Total of sales book cast short by Rs 175.
3) Purchased goods casting Rs 690 on credit from shrawani was recorded in the purchase book but failed to credit shrawani account.
4) Total of purchase book was Overcast by Rs 95.
5) Received Rs 548 from Firoz on account was correctly recorded in cash account but Firoz account was credited by Rs 584.
6) Paid Advertisement Expenses amounted to Rs 350 was wrongly recorded twice in the Advertisement account.

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(a) Credit sales to Mohan Rs. 7000 were recorded in purchase book. However, Mohan's account was correctly debited.

(b) Credit purchase from Rohan Rs. 9000 were recorded in the sales book. However, Rohan's account was correctly credited.

(c) Goods returned to Rakesh Rs. 4000 were recorded in sales return book. However, Rakesh's account was correctly debited.

(d) Goods returned from Mahesh Rs. 1000 were recorded through purchase return book. However, Mahesh's account was correctly credited.

(e) Goods returned to Naresh Rs. 2000 were recorded through purchase book. However, Naresh's account was correctly debited.

Q. Opening and closing stock are adjusted through purchases account. In that case, the entry recorded is ____________________.

Q. Rectify the following errors assuming that Suspense Account was opened. Ascertain the difference in Trial Balance.
(a) Credit sales to Mohan ₹ 7,000 were recorded in Purchase Book. However, Mohan's Account was correctly debited.
(b) Credit purchases from Rohan ₹ 9,000 were recorded in Sales Book. However, Rohan's Account was correctly credited.
(c) Goods returned to Rakesh ₹ 4,000 were recorded in Sale Returns Book. However, Rakesh's Account was correctly debited.
(d) Goods returned from Mahesh ₹ 1,000 were recorded through Purchase Returns Book. However, Mahesh's Account was correctly credited.
(e) Goods returned to Naresh ₹ 2,000 were recorded through Purchases Book. However, Naresh's Account was correctly debited.

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The correct option is B 1 and 2Accounting entry for credit purchase will be as under:Purchase A/c Dr. To Creditors A/cHence, if the transaction is not recorded in the books of account, it has to be:1. Added to purchase account2. added to the creditors account.

The correct option is B 1 and 2
Accounting entry for credit purchase will be as under:

Purchase A/c Dr.
To Creditors A/c

Hence, if the transaction is not recorded in the books of account, it has to be:
1. Added to purchase account
2. added to the creditors account.