Fortuna Limited received an invoice for purchases of goods for resale of £20,000. This invoice was debited to the salaries expense account and credited to trade payables. What is the journal entry required to correct this error of commission?

Question

Quizplus · Accepted Answer

The correct journal entry to correct the error involves debiting the purchases account to increase it (since the initial purchase was not recorded in this account) and crediting the salaries expense account to decrease it (since the purchase amount was incorrectly recorded here).

Fortuna Limited Received an Invoice for Purchases of Goods for Resale