[dummy] Mr. A is the accountant of a company ABC ltd. Goods of the value of Rs 20000 have been purchased of which goods of the value of Rs 2000 are found to be obselete & were sent back but the same was not communicated to the accountant by the store manager of the company seperately rather he only put a note at the back of the goods receipt slip. The accountant of the company recorded the value of goods at Rs 20000 in the books of accounts. Which step of accounting process has gone wrong in the above situation?

Measuring

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Recording

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Identifying

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Communicating

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Solution

The correct option is C Identifying
The accountant of the company did not identify the transaction correctly and did not notice that at the back of the slip there was note by the store manager about the goods sent back which were found to be obselete. He should have verified the same with the goods entered in the store with the register maintained at the gate of the store.

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Similar questions

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