PRC-1 · Chapter 2 · Question 80 of 100
If 'Lunar Industries' discovers an error where the purchase of a motor vehicle was wrongly entered into the Purchases Day Book, how is this error corrected?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) By processing an adjusting double-entry through the General Journal.
Explanation
Bookkeeping errors are corrected using formal adjusting entries designed to fix the wrong postings in the ledgers. This is a core function of the General Journal.
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