Rectification of error

When cheque received then bank should be debited bcoz it is increasing Bank a/c Dr To man Mohan a/c Nd when it is dishonoured entry should be reversed Man Mohan a/c Dr To bank a/c In this entry instead of crediting bank ,sales returns a/c is debited so to rectify this it should be credited

anusha athikamsetty

CA Inter

★ 65

06-Aug-21 14:41

Sales returns a/c debited wrong so you can credit sales return a/c

Rishi Kumar

CMA Inter

★ 6K+

06-Aug-21 14:29

It is provided that the error has occurred at the time of posting, which implies that the credit side has been correctly posted. However, instead of posting to the debit side of Manmohan, posting was made on the debit of Sales Return. However, in order to understand the effect of such transaction, we can pass the following incorrect â??entry. Sales Return A/c        Dr.   100   To Bank A/c                             100 Correct entry Manmohan Dr. 100 To Bank A/c 100 Rectifying Entry Manmohan Dr. 100 To Sales Return A/c 100

Rishi Kumar

CMA Inter

★ 6K+

06-Aug-21 14:42

we can pass the following incorrect â??entry. Sales return a/c Dr 100 To Bank a/c 100 Correct entry Manmohan    Dr.      100   To Bank A/c                    100 Rectifying Entry Manmohan       Dr.       100   To Sales Return A/c             100

Rishi Kumar

CMA Inter

★ 6K+

06-Aug-21 14:43

When the cheque is received,the entry is Bank a/c dr To man mohan When the cheque got dishonoured, entry (above entry) should be reversed,then Man mohan a/c dr To bank a/c But they had debited sales returns instead of man mohan and hence sales returns to be credited Man mohan a/c dr To sales returns

phanindra raj

CA Final

★ 9K+

06-Aug-21 20:51