One item of purchase of Rs. 25 has been posted from the purchase book to the ledger as Rs. 350 ?
What will be its rectifying entry and how ?
The rectified entry is-
Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) |
Supplier’s A/c | Dr. | 325 |
|
To Suspense A/c |
|
| 325 |
(The mistake in posting from Purchases Book to Ledger, now rectified) |
|
|
|
In the above entry, Supplier’s Account is debited because his account was wrongly credited (wrong posting from the Purchase Book to Ledger) with the excess amount of Rs 325 (Rs 350 – Rs 25). It should also be noted that this error does not affect the Purchases as it was correctly recorded in the Purchases book.