PRC-1 · Chapter 8 · Question 90 of 100
The total of the purchases day book was overcast by Rs. 2,500. How is this error corrected?
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 results in too large a debit to the Purchases account. The correction requires crediting Purchases and debiting Suspense.
More Correction of Errors MCQs
- Q92The sales return day book was overcast by Rs. 1,200. What is the correcting journal entry?
- Q93A discount received of Rs. 600 was omitted from the Discount Received account in the general ledger, although it was correctly entered in…
- Q94Bank charges of Rs. 300 were completely omitted from the books. How does this affect the financial statements before correction?
- Q95Cash sales of Rs. 2,000 were posted to the credit of the Sales account but mistakenly debited to Trade Receivables instead of Cash. What…
- Q96The proprietor withdrew Rs. 10,000 in cash for personal use. This was correctly recorded in the cash book but debited to the Miscellaneous…