Question

Sales book was overcast by Rs$20,000$. If this error located after preparation of trial then which of the following rectification entry is correct?

• A. Suspense A/c Dr. $20,000$
  To Sales A/c $20,000$
• B. Sales A/c Dr. $20,000$
  To Suspense A/c $20,000$
• C. Profit & Loss Adj.A/c Dr. $20,000$
  To Sales A/c $20,000$
• D. Sales A/c Dr. $20,000$
  To Profit & Loss Adj. A/c $20,000$

Answer 1

The correct option is B Sales A/c Dr. $20,000$

To Suspense A/c $20,000$
Overcasting of sales book will results a higher profit. Its an error of commission. If the error is located after the trial balance, following rectification entry need to be passed:

Sales A/c Dr. 20000

To Suspense A/c 20000