PRC-1 · Chapter 8 · Question 29 of 100
A credit sale of Rs. 4,800 to Zaid was recorded in the sales day book as Rs. 8,400 and posted to the ledger accordingly. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Sales Rs. 3,600, Credit Zaid Rs. 3,600
Explanation
This is an error of original entry. Both Sales and Zaid's accounts are overstated by Rs. 3,600. The correction requires reversing the excess by debiting Sales and crediting Zaid.
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