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It is not pos...

Question

It is not possible to pass journal entries using the debit and credit note which will help in correcting the books of accounts.

A

True

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B

False

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Solution

The correct option is B False
False. Debit and credit notes are issued to correct the issues of short debit or short credit given earlier. They give an advantage of not editing the books of original entry and still altering the accounts by either debiting or crediting the accounts so needed respectively.

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Q. A journal entry cannot be passed in a journal proper with the debit and credit note.

Q. Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts ____________.

Q. Give one word / term or phrase for each of the following statements.

(1) A book of original entry.
(2) The process of recording transactions in the journal.
(3) Brief explanation of an entry.
(4) The French word from which the word journal is derived.
(5) Entry in which more than one account are to be debited or credited.
(6) Anything taken by proprietor from business for his personal use.
(7) Amount of money payable to broker while buying and selling the shares and securities.
(8) Entry in which one account is debited and another account is credited
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(10) An account that is debited when rent is paid to landlord.

A journal entry in which two or more account is debited or credited is referred as ___.

Q. The books of Ramesh did not agree. The difference of ₹ 12,700 in trial balance was placed to the debit of suspense account. Subsequently, the following errors were located. Pass journal entries to rectify the errors and prepare the suspense account:
(i) The total of the purchases returns book, ₹ 2,100 has not been posted.
(ii) A sale of ₹ 4,300 to Ram has been credited to his account as ₹ 3,400.
(iii) A purchase from Suresh for ₹ 4,000 has been entered in the sales book. However, Suresh has been correctly credited with ₹ 4,000.
(iv) Old furniture sold on credit for ₹ 5,400 has been recorded in the sales account as ₹ 4,500.
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