PRC-1 · Chapter 8 · Question 46 of 100
To correct the error in the previous question (Rent received of Rs. 1,400 debited instead of credited to Rent Received), what journal entry is needed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Suspense Rs. 2,800, Credit Rent Received Rs. 2,800
Explanation
To fix the 1,400 false debit and establish the required 1,400 true credit, Rent Received must be credited by 2,800, clearing the 2,800 credit balance in the Suspense account via a debit.
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