Rectification of errors

Reetikaa R

Ma'am correct ??

ruchi lahoti

Can you please elaborate your query?

Thread Starter

Can u explain the first of entry of that question

Thread Starter

Illustration 31

ruchi lahoti

Correct entry should have been: Think and Fast corp 12,500 To Purchases Return 12,500 By effect of this entry, profit would have increased by 12,500 But due to error: Sales Return has been debited by 21500 (profit decreased by 21,500). So, in short profit decreased by total of 34,000 (21,500 + 12,500) and Suspense A/c would have been opened with 34,000 + 9,000 (excess debit to Think and Fast). So, now entry will be - Suspense Ac/ 43,000 To Think and Fast Corp 9,000 To P&L Adjustment 34,000

Thread Starter

Thank u mam but I the solution they calculated different why

ruchi lahoti

Don't know. You can write this entry it's correct.

ruchi lahoti

Correct entry should have been: Think and Fast corp 12,500 To Purchases Return 12,500 By effect of this entry, profit would have increased by 12,500 But due to error: Sales Return has been debited by 21500 (profit decreased by 21,500). So, in short profit decreased by total of 34,000 (21,500 + 12,500) and Suspense A/c would have been opened with 34,000 + 9,000 (excess debit to Think and Fast). So, now entry will be - Suspense Ac/ 43,000 To Think and Fast Corp 9,000 To P&L Adjustment 34,000

ruchi lahoti

Correct entry should have been: Think and Fast corp 12,500 To Purchases Return 12,500 By effect of this entry, profit would have increased by 12,500 But due to error: Sales Return has been debited by 21500 (profit decreased by 21,500). So, in short profit decreased by total of 34,000 (21,500 + 12,500) and Suspense A/c would have been opened with 34,000 + 9,000 (excess debit to Think and Fast). So, now entry will be - Suspense Ac/ 43,000 To Think and Fast Corp 9,000 To P&L Adjustment 34,000