Multiple choice

The cheque of Rs. 85,000 issued to Ramesh has been dishonored, and has been wrongly credited to purchase return book. What would be rectifying journal entry?

  1. Bank a/c Dr. Rs. 85,000To Ramesh Rs. 85,000

  2. Bank a/c Dr. Rs. 85,000To Purchase Return a/c Rs. 85,000

  3. Purchase Return a/c Dr. Rs. 85,000To Ramesh a/c Rs. 85,000

  4. Purchase return a/c Dr. Rs. 85,000To cheque issued but not Rs. 85,000presented for payment a/c

  5. Ramesh Dr. Rs. 85,000To Purchase Return a/c Rs. 85,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
The correct entry is The wrong entry is
--- ---
Ramesh a/c   Dr.
Rs. 85,000
           Bank a/c        Dr
Rs. 85,000
To Bank a/c
Rs. 85,000
To   Purchase Return a/c
Rs. 85,000

The rectifying Entry is

| | | | |
Purchase Return a/c
|
Dr. Rs. 85,000
| | | |
To Ramesh
|
Rs. 85,000
|  | |

The correct option is (3).

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