PRC-1 · Chapter 8 · Question 37 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
Because the credit to Cash was recorded, the trial balance lacks the corresponding debit. The correction establishes the debit to the Supplier's account and clears the credit imbalance in Suspense.
More Correction of Errors MCQs
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