PRC-1 · Chapter 8 · Question 33 of 100
Cash sales of Rs. 2,000 were posted to the credit of the Sales account but mistakenly debited to Trade Receivables instead of Cash. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Cash Rs. 2,000, Credit Trade Receivables Rs. 2,000
Explanation
To correct this error, the amount wrongly debited to Trade Receivables must be credited, and the intended Cash account must receive the debit.
More Correction of Errors MCQs
- Q35A transposition error occurs when:
- Q36If a transposition error occurs and causes the trial balance to disagree, the difference will always be mathematically divisible by:
- Q37A payment of Rs. 4,500 to a supplier was recorded in the cash book but completely omitted from the supplier's ledger account. What is the…
- Q38A recovery of a previously written-off bad debt of Rs. 1,500 was correctly recorded in the cash book but credited to the customer's…
- Q39An amount of Rs. 800 received from a debtor, Bilal, was credited to the account of another debtor, Bilal & Co. The trial balance will: