PRC-1 · Chapter 8 · Question 54 of 100
A sale of Rs. 200 recorded in the sales day book to BTS & Co was credited to their account. What journal entry must be recorded to correct this error?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) DEBIT: BTS & Co Rs. 400 and CREDIT: Suspense Rs. 400
Explanation
A sale should be debited to the customer. By crediting them 200, the account is off by 400. To correct this, debit the customer by 400 and credit Suspense 400.
More Correction of Errors MCQs
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