A cheque for 1000 received from Manmohan was dishonoured and had been posted to the debit of the sales return account.
Please show the wrong and right entry too.

Incorrect entry
It is provided that the error has occurred at the time of posting, which implies that the credit side has been correctly posted. However, instead of posting to the debit side of Manmohan, posting was made on the debit of Sales Return. However, in order to understand the effect of such transaction, we can pass the following incorrect ‚Äčentry.

Sales Return A/c        Dr.   1,000
  To Bank A/c                             1,000

Correct entry
Manmohan    Dr.      1,000
  To Bank A/c                    1,000

Rectifying Entry
Manmohan       Dr.       1,000
  To Sales Return A/c             1,000

A similar query is already covered in our study material. Please go through the following link and refer to Point 3.

  • 22
The entry should be:-

Manmohan Dr. 1000
To Cheque. 1000

But, the incorrect one passed is:-

Sales Return. Dr. 1000

• It's rectification is:-

Manmohan. Dr. 1000
Suspense. Dr. 1000
To Cheque. 1000
To Sales Return. 1000
  • -9
What are you looking for?