PRC-1 · Chapter 8 · Question 95 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 fix this error, the wrongly debited Trade Receivables account must be credited to remove the entry, and the correctly intended Cash account must be debited.
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