rectification of entries

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goods returned by the customer mr.X of Rs. 5650 has been posted in the return inward account as rs. 5560 and in Mr. X a/c as Rs. 6550.

Replies (4)

correct entry that should have been recorded--

sales return A/c   Dr.  5650

To X's A/c                              5650

BUT entry posted in return inward is 90rs short and posting in X's A/c is 900 rs more.. so in order to reach the correct level of entry we will debit sales return A/c by rs 90 and debit excees of 900rs  in X's A/c.

Hence the composite rectified entry will be  sales return A/c  Dr. 90

                                                                               X's A/c                Dr. 900

                                                                                           To suspense A/c        990

Credit to suspense A/c is done to reverse the effect of differnce which was coming in trial balance due to wrong posting of entries. TB showed some diff. which was put to suspense A/c. Now wen the error is detected and rectified ,suspense A/c will not appear on account of passing rectiffied entry.

thanks for sharing this valuable information

Faiz is absolutly right

good

ya it is correct accounting

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