Multiple choice

An invoice of purchase from Ajit for Rs. 20,000 was not recorded in the books. Which is the correct entry to rectify this error, if the error was found before the preparation of the Trial Balance?

  1. Dr. purchase A/c and Cr. cash A/c.

  2. Dr. purchase A/c and Cr. Ajit A/c.

  3. Dr. purchase A/c and Cr. suspense A/c.

  4. Dr. profit and loss adjustment A/c and Cr. Ajit A/c.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The transcation is not recorded, so the rectifying entry is the same as it is recorded in the books when the transaction occured.

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