Question

Which of the following account(s) will be affected, while rectifying the error of a purchase return of Rs.200 to Mr. A entered in sales book instead of purchase return book?

• A. A's account only
• B. Sales account only
• C. Purchase returns account and sales account
• D. Purchases account only

Answer 1

Answer: (C)

Purchase returns account and sales account

In accordance to the above transaction, the following will be the entries:

Wrong Entry:

Mr. A's a/c Dr. 200

To Sales a/c 200

Correct Entry:

Mr. A's a/c Dr. 200

To Purchase Return a/c 200

Rectification Entry:

Sales a/c Dr. 200

To Purchase Return a/c 200

Here, both sales and purchase return a/c will be affected while rectifying the above error. Hence, C is the correct option.