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    Question

    If a purchase return of ₹1,000 has been wrongly posted

    to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the:
    A Trial balance would show the debit side to be ₹1,000 more than the credit. Correct Answer Incorrect Answer
    B Trial balance would show the credit side to be ₹1,000 more than the debit. Correct Answer Incorrect Answer
    C The debit side of the trial balance will be ₹2,000 more than the credit side. Correct Answer Incorrect Answer
    D The trial balance will still agree. Correct Answer Incorrect Answer

    Solution

    Purchase return is normally recorded on the credit side, but here it was wrongly debited to the sales return account, which is also a debit account. So, instead of crediting ₹1,000, we debited an additional ₹1,000. This causes a double error of ₹2,000 on the debit side.

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