Question

Goods returned to X for Rs. 5000 recorded in Purchase book as Rs. 5500. This ______.

• A. will affect the agreement of trial balance
• B. not affect the agreement of trial balance
• C. may or may not affect the agreement of trial balance
• D. none of these

Answer 1

Answer: (A)

will affect the agreement of trial balance

Goods returned to X for Rs. 5,000 recorded in purchase book at 5,500 is wrong as the debit and credit of the transaction won't match. Also it is recorded in the wrong account. It should have been recorded as:-

Supplier's A/c dr......... 5,000

To Purchase return A/c 5,000