A trade purchase of ` 5,500 from Y was passed through Sales Day Book as ` 550, what rectification entry would be passed if the mistake is detected before preparation of Trading and Profit & Loss A/c

Question

Quizplus · Accepted Answer

The correct rectification entry involves debiting both the Sales Account for the incorrect entry of ` 550 and the Purchase Account for the correct amount of ` 5,500, then crediting Y's Account for the total corrected amount of ` 6,050. This corrects the mistake in recording the transaction and ensures the accounts reflect the accurate transaction with Y.

A Trade Purchase of ` 5,500 from Y Was Passed