Question

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

Q: Answer-If a purchase return of ₹1,000 has been wrongly posted to the debit of the sales returns account, bu...

Explanation 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 .

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.

B Trial balance would show the credit side to be ₹1,000 more than the debit.

C The debit side of the trial balance will be ₹2,000 more than the credit side.

D The trial balance will still agree.

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

Solution