Rectify the following:
i)A discount allowed to a customer has been credited to him as Rs.145 in place of Rs.154.
Please explain how to do it.Please give the wrong entry,the correct entry,and the rectified entry.Thanks!
The solution given by Chandan is correct except the rectifying journal entry.
The correct solution is as follows:
Correct entry:
Correct posting of transaction:
Wrong posting of transaction:
Rectifying Journal entry:
Rectifying posting of transaction:
However, we advise you to post your question every day within a range of 1 to 2 from each subject on per day basis. This enables us to provide answers to your queries regularly without compromising on the answers to our other users.
The correct solution is as follows:
Correct entry:
| Discount Allowed A/c | Dr. | 154 | ||
| To Customer A/c | 154 |
Correct posting of transaction:
| Customer Account | |||||||||
| Dr. | Cr. | ||||||||
| Date | Particulars | J.F. | Amount (Rs) |
Date | Particulars | J.F. | Amount (Rs) |
||
| Discount Allowed A/c | 154 | ||||||||
Wrong posting of transaction:
| Customer Account | |||||||||
| Dr. | Cr. | ||||||||
| Date | Particulars | J.F. | Amount (Rs) |
Date | Particulars | J.F. | Amount (Rs) |
||
| Discount Allowed A/c | 145 | ||||||||
| |
|||||||||
Rectifying Journal entry:
| Suspense A/c | Dr. | 9 | ||
| To Customer A/c | 9 | |||
| (Discount allowed credited to customers a/c with Rs 9 less) |
Rectifying posting of transaction:
| Customer Account | |||||||||
| Dr. | Cr. | ||||||||
| Date | Particulars | J.F. | Amount (Rs) |
Date | Particulars | J.F. | Amount (Rs) |
||
| Discount Allowed A/c (Posting with wrong amount) |
145 | ||||||||
| Suspense A/c (Wrong amount posted earlier, now rectified) |
9 | ||||||||
However, we advise you to post your question every day within a range of 1 to 2 from each subject on per day basis. This enables us to provide answers to your queries regularly without compromising on the answers to our other users.