Multiple choice

A purchase of Rs. 6800 has been made by the firm but the amount has been posted to creditor’s account for Rs. 6000. For rectification, the journal entry would be

  1. debit creditor and credit purchase account with Rs. 800

  2. debit purchase account and credit suspense account with Rs. 800

  3. debit suspense account and credit creditor’s account with Rs. 800

  4. debit creditor’s account and credit suspense account with Rs. 800
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Since creditor's account is undercredited by Rs. 800, so debit suspense account and credit creditor’s account with Rs. 800.

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