PRC-1 · Chapter 8 · Question 74 of 100
Interest expense of Rs. 100 has been wrongly debited to stationery expense. What entry is required to correct the error?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Dr Interest expense Rs. 100; Cr Stationery expense Rs. 100
Explanation
To correct this error of commission/principle, you simply debit the correct account (Interest Expense) and credit the incorrectly debited account (Stationery Expense).
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