Question

Drawings of goods costing 300 were not recorded in the books of account. If this error located after preparation of trial then which of the following rectification entry is correct?

• A. Purchases A/c Dr. 300
  To Drawings A/c 300
• B. Drawings A/c Dr. 300
  To Suspense A/c 300
• C. Profit tr Loss Adj. A/c Dr. 300
  To Purchases A/c 300
• D. Drawings A/c Dr. 300
  To Purchases A/c 300

Answer 1

The correct option is D Drawings A/c Dr. 300

To Purchases A/c 300
After the preparation of trial balance, suspense account is opened to rectify the error that has one sided effect. Here the complete entry has been omitted so suspense account cannot be opened. Here we pass the original entry that should be recorded.