Multiple choice

Where does the rectifying entry need to be passed in a nominal account, when the error is detected after the preparation of final account?

  1. Profit and loss account

  2. Profit and loss adjustment account

  3. Profit and loss appropriation account

  4. Respective nominal account
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When any nominal account is affected because of any error, it will affect the profilt, so after prepration of profit and loss account,  we can adjust the profit,  with the profit and loss adjustment account.

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