Multiple choice

What is the rectified entry, when the purchase of machinery is entered in the purchase a/c?

  1. Dr. purchase a/c & Cr. machinery a/c

  2. Dr. machinery a/c & Cr. purchase a/c

  3. Dr. purchase a/c & Cr. bank a/c

  4. Dr. machinery a/c & Cr. bank a/c
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When machinery is incorrectly debited to purchase account, we need to reverse the wrong entry and pass the correct one. The purchase account was wrongly debited, so we credit it to cancel that entry. Machinery is an asset that should be debited when acquired. Hence, the rectification entry is: Dr. Machinery a/c and Cr. Purchase a/c.

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