PRC-1 · Chapter 8 · Question 98 of 100
A payment of Rs. 4,500 to a supplier was recorded in the cash book but completely omitted from the supplier's ledger account. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Supplier Rs. 4,500, Credit Suspense Rs. 4,500
Explanation
The credit to the bank was recorded, leaving the trial balance short on debits. The correction establishes the missing debit to the Supplier's account and balances the ledger via a credit to Suspense.
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