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Answer with explanation
Accountancy
Rectify
Answers (3)
Correct entry for purchase is Purchase account Dr To creditor or supplier ac Here the creditor/ supplier Gupta&co account is wrongly debited instead of crediting it. but purchase account is correctly debited. So without opening suspense account we must credit this account. When we credit this account with 250 there will already be a wrong entry in which we would have already credited 250 so credit effect in this account will be neutralised by the wrong entry. so we must credit the entry by 500 (ie 250 to neutralised the wrong debit entry and another 250 to give correct credit effect)
Dharshini Sankar
Correct entry for purchase is Purchase account Dr To creditor or supplier ac Here the creditor/ supplier Gupta&co account is wrongly debited instead of crediting it. but purchase account is correctly debited. So without opening suspense account we must credit this account. When we credit this account with 250 there will already be a wrong entry in which we would have already credited 250 so credit effect in this account will be neutralised by the wrong entry. so we must credit the entry by 500 (ie 250 to neutralised the wrong debit entry and another 250 to give correct credit effect)
In which we Would have already *debited 250* so credit effect in this in 8 th line of the reply pls replace the word credit by debit
