cash paid to Mani Rs.5,000 against our acceptance was debited to Manu
pls explain in detail...how to rectify this error....and which type of erro r

Hi Retheeshp
 
Correct Entry
Journal
Bills Payable A/c Dr. 5,000  
To Cash A/c   5,000

Wrong Posting
 
Dr. Manu’s A/c Cr.
Particulars Amount Particulars Amount
Cash A/c 5,000    
       

Here, it is assumed that Cash Account is correctly posted in the books.
 
Rectifying Entry
Journal
Particulars Debit
Amount
(Rs)
Credit
Amount
(Rs)
Bills Payable A/c Dr. 5,000  
To Manu's A/c   5,000

Since Suspense Account is not used to rectify this error, it will be regarded as Two-sided Error.

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