Question

Which of the following account(s) will be affected, while rectifying the error of an amount Rs.$200$ received from Mr. "P" wrongly credited to Mr. "Q" s account?

• A. Only Cash Account
• B. Only P's Account
• C. Only Q's Account
• D. Both of Mr.P's & Mr.Q's Account

Answer 1

The correct option is D Both of Mr.P's & Mr.Q's Account

This is an error of commission. Instead of crediting the account of Mr. P, account of Mr. Q is credited. Hence while rectification, the account of Mr. P and Mr. Q will be affected. Following rectification entry will be passed:

Mr. Q A/c Dr. 200

To Mr. P A/c 200