Question

Rs$3,750$ paid on account of salary to the cashier Dhawan stands debited to his personal account. Which of the following rectification entry is correct?

• A. Suspense A/c Dr. $3,750$
  To Dhawan A/c $3,750$
• B. Dhawan A/c Dr. $3,750$
  To Suspense A/c $3,750$
• C. Salaries A/c Dr. $3,750$
  To Suspense A/c $3,750$
• D. Salaries A/c Dr. $3,750$
  To Dhawan A/c $3,750$

Answer 1

The correct option is D Salaries A/c Dr. $3,750$

To Dhawan A/c $3,750$
Payment of salary is an expenses. This need to be debited to salary expenses account not to the person to whom the salary is paid.

Rectification entry need to be passed as under:

Salaries A/c Dr. 3750

To Dhawan A/c 3750