PRC-1 · Chapter 8 · Question 30 of 100
The sales return day book was overcast by Rs. 1,200. What is the correcting journal entry?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debit Suspense Rs. 1,200, Credit Sales Return Rs. 1,200
Explanation
An overcast sales return book means the debit total to the Sales Return account is too high. The correction credits Sales Return and debits Suspense.
More Correction of Errors MCQs
- Q32Bank charges of Rs. 300 were completely omitted from the books. How does this affect the financial statements before correction?
- Q33Cash sales of Rs. 2,000 were posted to the credit of the Sales account but mistakenly debited to Trade Receivables instead of Cash. What…
- Q34The proprietor withdrew Rs. 10,000 in cash for personal use. This was correctly recorded in the cash book but debited to the Miscellaneous…
- Q35A transposition error occurs when:
- Q36If a transposition error occurs and causes the trial balance to disagree, the difference will always be mathematically divisible by: