Mr. A is the accountant of a company ABC ltd. Goods worth Rs 20,000 have been purchased of which goods worth Rs 2,000 are found to be obsolete & were sent back, but the same was not communicated to the accountant by the store manager of the company separately. rather he put a note at the back of the goods receipt slip. The accountant of the company recorded the value of goods at Rs 20,000 in the books of accounts. Which step of accounting process has gone wrong in the above situation?
Mr. A is the accountant of a company ABC ltd. Goods worth Rs 20,000 have been purchased of which goods worth Rs 2,000 are found to be obsolete & were sent back, but the same was not communicated to the accountant by the store manager of the company separately. rather he put a note at the back of the goods receipt slip. The accountant of the company recorded the value of goods at Rs 20,000 in the books of accounts. Which step of accounting process has gone wrong in the above situation?
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 a note by the store manager about the goods sent back which were found to be obsolete. He should have verified the same with the records in the register at the gate, when the goods were brought to the store.
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 a note by the store manager about the goods sent back which were found to be obsolete. He should have verified the same with the records in the register at the gate, when the goods were brought to the store.
