so this is a question from study material of cpt (accounts)
rectify following errors:
1.goods sold and recorded as sales for rs.4000,were packed.however stock taking intervened and the parcel of goods was not despatched but was included in stock in hand.the title of goods has not been transferred to buyer.
now the rectification entry is given as:-
sales a/c dr. 4000
To sundry debtors a/c 4000
(Entry for credit sales reversed)
my questions are:-
1.where has it been mentioned that this is a credit sales?
2.what is title of goods not transferred means?i mean without it how can one say it is sales?
please reply i am confused
CAclubindia
