Sales Ledger balances

This query is : Resolved 

03 July 2021 A return of goods by a customer 150 has been posted to the debit side in the sales ledger

A book debt due by Sen has been omitted from the list of Sales Ledger balances.

What are the rectifying errors of these two?

23 July 2025 Let’s analyze both errors and how to rectify them:

---

### Error 1:

**A return of goods by a customer (₹150) has been posted to the debit side in the sales ledger.**

* **What’s wrong?**
Returns by customers (sales returns) reduce sales and thus reduce the amount receivable from the customer.
**Sales return should be posted to the credit side** of the customer's account (because it reduces the amount receivable).

* **Effect of error:**
Posting the sales return to the **debit side** increases the customer’s outstanding balance incorrectly.

* **Rectification:**
To correct this, you need to **reverse the incorrect debit entry** and post the sales return correctly on the **credit side**.

* **Journal Entry to rectify:**

```
Sales Ledger (Customer A/c) Dr ₹150 (to reverse wrong debit)
To Sales Returns / Sales Returns Ledger Cr ₹150 (reverse wrong entry)
```

Then, post the correct entry:

```
Sales Returns Ledger Dr ₹150
To Sales Ledger (Customer A/c) Cr ₹150
```

Or simply pass a correcting entry to debit the sales returns and credit the sales ledger/customer account by ₹150.

---

### Error 2:

**A book debt due by Sen has been omitted from the list of Sales Ledger balances.**

* **What’s wrong?**
The amount receivable from Sen was omitted, so the debtor’s balance is understated.

* **Effect of error:**
Total sales ledger balances will be understated by that amount.

* **Rectification:**
Add the missing book debt balance of Sen to the sales ledger balances.

* **Journal Entry:**

```
Debtors (Sales Ledger) Dr [Amount of Sen’s debt]
To Suspense Account / Profit & Loss Cr [same amount]
```

(If the omission was only in the list but the ledger was correct, then no entry may be needed, just an adjustment to the statement.)

---

### Summary Table:

| Error | Effect | Rectification Entry |
| ------------------------------------------ | --------------------------- | ------------------------------------------------------------------ |
| Sales return ₹150 posted on debit side | Overstates debtor balance | Reverse debit & post ₹150 on credit side to correct |
| Book debt due by Sen omitted from balances | Understates debtor balances | Add missing debt by debiting debtor and crediting suspense or P\&L |

---

If you want, I can help you draft the correcting journal entries in Tally format or accounting software entries. Would that help?


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