Question

If a purchase return of Rs. 200 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show:

• A. the credit side to be Rs. 200 more than debit side.
• B. the debit side to be Rs. 200 mote than credit side.
• C. the credit side to be Rs. 400 more than debit side.
• D. the debit side to be Rs. 400 more than credit side.

Answer 1

Answer: (D)

the debit side to be Rs. 400 more than credit side.

If Purchase return of RS-200 is wrongly debited to sales return account but is correctly entered in the suppliers account then the debit side of the trial balance will be more than the credit side by RS-400. The correct entry should have been suppliers account debit to purchase account, but the purchase return amount is wrongly debited to Sales return account which is an extra credit. Hence, credit side will be less than RS-400 ( 200 for purchase return and 200 for wrong debit)