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Rectification of Errors
Accountancy
Are all my four entries correct ? What will be the narration for the third entry ?
Answers (15)
Thread Starter
Aditya BirlaIs C correct ?
I'm not sure it's correct or not Cash ac 40 Bank ac 40 To creditor ac 40 To suspence 40
Dhakshana Dhakshana
I'm not sure it's correct or not Cash ac 40 Bank ac 40 To creditor ac 40 To suspence 40
But the faculty said X ac Dr. To Cash ac.
Dhakshana Dhakshana
I'm not sure it's correct or not Cash ac 40 Bank ac 40 To creditor ac 40 To suspence 40
But what will be the narration ?
Thread Starter
Aditya BirlaBut the faculty said X ac Dr. To Cash ac.
As per my understanding the question says cheque of 40 has been issued for payment of which total 40 dishonored..as of now first entry should be Creditor dr To bank (issue of cheque for payment) It has been dishonored now inverse the entry as bank To creditor But as per the question the only entry in the Books was payment of 40 for cash which is not correct because the mode of payment here is through bank not cash so RoA
See last line of (c) ,only payment has been recorded, they omitted debiting bank while receiving cheque and therefore suspense account would have been created and now the since the cheque is Dishonored , rectification entry would be X alc Dr 40 To suspense alc 40
