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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

    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 .

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