The Company incorrectly recorded a deposit of daily credit sales of Rs. 4,500 as

Sail E0 Webinar

Question

The Company incorrectly recorded a deposit of daily credit sales of Rs. 4,500 as Rs. 5,400. What is the appropriate entry, the company should follow regarding the error of Rs. 900?

Options:

A . Add Rs 900 to its cash account

B . Sales (Dr) & Debtors (Cr) by Rs 900 each

C . Sales (Cr) & Debtors (Dr) by Rs 900 each

D . None of the above

Answer: Option B
:
B
To rectify the error, Sales account shall be debited & Debtors account shall be credited to reduce the balances by Rs 900 each.

Was this answer helpful ?

Next Question

Submit Solution

More Questions on This Topic :

Question 1. Which of the following errors shall be revealed by the Trial Balance?....

Question 2. If salary paid to employee is entered in the personal account of employee, will this error be revealed by the Trial Bala....employee, will this error be revealed by the Trial Balance?

Question 3. Rs 1000 paid for installation of a new machine is debited to Repairs account. Which accounts shall be debited & cred....to Repairs account. Which accounts shall be debited & credited?

Question 4. Goods worth Rs 1550 were purchased from Mayuri. It was recorded as Rs 1500 by mistake. Which account shall be debited &a....be debited & by what amount to rectify this mistake?

Question 5. To record a repair or maintenance expense of a machine in your records, the ___ account is ___ by the amount of the expe....by the amount of the expense in a journal entry.

Question 6. Purchase book was undercast by Rs 100. To rectify this which of the following is correct?....

Question 7. Rectification of an error of overcasting in the Purchase returns book will require purchase return account to be ___ &am....account to be ___ & suspense account to be ___

Question 8. Repairs bill for the proprietor`s car Rs 410 has been paid by the firm & has been debited to the repairs account. Wh....of the following is correct with regards to its rectification?

Question 9. While rectifying the errors of overcasting/ undercasting, which of the following accounts are used?....

Question 10. A sale of Rs. 2550 on credit entered in the Sales Book as Rs.5250. The effect of this mistake on the Gross Profit shall ....of this mistake on the Gross Profit shall be ___ .

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Pie Chart - Test Paper 1 Data Interpretation Reasoning & DI

Tabulation - Test Paper 2 Data Interpretation Reasoning & DI

Test Paper 1 Direction Sense Test Reasoning & DI

ICA , RDIC,GFM Free Modal Test Paper - Non - Technical Branch Old Syllabus 2022 - SAIL Junior Officer E0

GFM Combined 1 Free Revision Test SAIL JO E-0