PRC-1 · Chapter 8 · Question 28 of 100
The purchase day book was overcast by Rs. 2,500. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Suspense Rs. 2,500, Credit Purchases Rs. 2,500
Explanation
An overcast purchase day book means the total transferred to the debit of the Purchases account is too high. To fix this, Purchases must be credited and Suspense debited.
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