PRC-1 · Chapter 8 · Question 91 of 100
A credit sale of Rs. 4,800 to Zaid was recorded in the sales day book as Rs. 8,400. 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 that overstated both Sales (Credit) and Zaid (Debit) by 3,600. Reversing the excess requires Debiting Sales 3,600 and Crediting Zaid 3,600.
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