Farzana Limited makes credit sales of £225,324 (including VAT of £37,554) in September. The double entry to record these sales was Debit trade receivables £252,324, Credit Sales £210,270, Credit VAT £42,054. What is the journal entry required to correct this error of original entry?
A) Debit sales £27,000, Credit trade receivables £27,000.
B) Debit trade receivables £27,000, Credit sales £27,000.
C) Debit sales £22,500, Debit VAT £4,500, Credit trade receivables £27,000.
D) Debit trade receivables £27,000, Credit sales £22,500, Credit VAT £4,500.
Correct Answer:
Verified
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