A credit purchase invoice for Rs. 11,000 is recorded twice in Purchases Account and in the supplier's account. Which entry rectifies the duplication?
Correct answer: B. Debit Supplier Rs. 11,000 and credit Purchases Rs. 11,000
- A. Debit Purchases Rs. 11,000 and credit Supplier Rs. 11,000
- B. Debit Supplier Rs. 11,000 and credit Purchases Rs. 11,000
- C. Debit Suspense Rs. 11,000 and credit Purchases Rs. 11,000
- D. Debit Cash Rs. 11,000 and credit Supplier Rs. 11,000
Explanation
The duplicate entry has overstated both Purchases and the supplier's liability by Rs. 11,000. Debiting the supplier and crediting Purchases removes the second entry, and no Suspense Account is needed because both sides were duplicated.
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About Correction of Errors and Suspense Accounts
Accounting errors are corrected by journal entries after identifying whether the mistake affects one account or both sides of double entry. Suspense accounts temporarily hold an unexplained trial balance difference and must be cleared, while errors of omission, commission, principle, original entry and reversal require different corrections.
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