A debit sale of goods to Ahmed for Rs. 6,000 is entered in Ahmed's account as Rs. 600, while the Sales Account is correctly credited. Which entry rectifies the error?
Correct answer: A. Debit Ahmed Rs. 5,400 and credit Suspense Rs. 5,400
- A. Debit Ahmed Rs. 5,400 and credit Suspense Rs. 5,400
- B. Debit Suspense Rs. 5,400 and credit Ahmed Rs. 5,400
- C. Debit Ahmed Rs. 6,000 and credit Sales Rs. 6,000
- D. Debit Sales Rs. 5,400 and credit Ahmed Rs. 5,400
Explanation
Ahmed's account is short-debited by Rs. 5,400, while the Sales Account is correct. The correcting entry debits Ahmed for the shortage and credits Suspense because the trial balance difference arose from one-sided posting.
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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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