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Rectification of Errors after preparation of Trial Balance but before preparation of Final Accounts
Accountancy
From Cash Book it is found that discount of Rs.85 allowed by Jadu was not posted to his account. What will be the entry ? Please reply
Answers (16)
Dhakshana Dhakshana
I assume that only Jadu ac is not posted Discount ac has been entered so it's the entry
Suspense dr To discount received - this is not correct ?
Thread Starter
Aditya BirlaSuspense dr To discount received - this is not correct ?
No bro..What's your view how u wrote the entry bro
Dhakshana Dhakshana
No bro..What's your view how u wrote the entry bro
Because the faculty told me this.
Thread Starter
Aditya BirlaBecause the faculty told me this.
In my view as per the question when Jadu is allowing discount for us it mean we are paying him money for which he allows discount (in fact he is our creditor)for which the Jadu account is not posted so I debit Jadu and cr suspance
Thread Starter
Aditya BirlaRight answer will be Suspense A/c Dr. To Jadu A/c
I don't think so bro the correct ans is dr Jadu and cr suspance...but why do u cr Jadu explain me the reason
Dhakshana Dhakshana
I don't think so bro the correct ans is dr Jadu and cr suspance...but why do u cr Jadu explain me the reason
Because you already assumed Jadu as a credit that's why I credit Jadu. I think understand this fact.
Dhakshana Dhakshana
In my view as per the question when Jadu is allowing discount for us it mean we are paying him money for which he allows discount (in fact he is our creditor)for which the Jadu account is not posted so I debit Jadu and cr suspance
You assumed Jadu as a creditor and creditor always will be in credit side according to Trial Balance rule.
Thread Starter
Aditya BirlaYou assumed Jadu as a creditor and creditor always will be in credit side according to Trial Balance rule.
Yes creditor will have cr balance now we are paying creditor so if you again cr him your creditor balance will increase which mean u have to still pay him meaning....if only you dr creditor your balance will reduce
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