Rectify the following:

i)A discount allowed to a customer has been credited to him as Rs.145 in place of Rs.154.

Please explain how to do it.Please give the wrong entry,the correct entry,and the rectified entry.Thanks!

The solution given by Chandan is correct except the rectifying journal entry.

The correct solution is as follows:

Correct entry:
Discount Allowed A/c Dr.   154  
   To Customer A/c       154

Correct posting of transaction:
Customer Account
Dr.   Cr.
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
          Discount Allowed A/c   154
               

Wrong posting of transaction:
Customer Account
Dr.   Cr.
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
          Discount Allowed A/c   145
               
 

Rectifying Journal entry:
Suspense A/c Dr.   9  
   To Customer A/c       9
(Discount allowed credited to customers a/c with Rs 9 less)        

Rectifying posting of transaction:
Customer Account
Dr.   Cr.
Date Particulars J.F. Amount
(Rs)
Date Particulars J.F. Amount
(Rs)
          Discount Allowed A/c
(Posting with wrong amount)
  145
          Suspense A/c
(Wrong amount posted earlier, now rectified)
   9

However, ​we advise you to post your question every day within a range of 1 to 2 from each subject on per day basis.  This enables us to provide answers to your queries regularly without compromising on the answers to our other users.
 

  • 1
1. Suspence Ac ...................dr                       Rs. 9
             To Discount allowed                                  Rs. 9
                  Right Entry
In the cr. side of customer Ac entry will be By dis. allowed Rs. 154.
                   Wronng Entry
in the cr. side of customer Ac entry will be by Dis. Allowed Rs. 145
                    Rectified
In the cr. side of customer Ac we will enter By suspense Ac Rs.9

Hence, The Rectified entry will be
Suspence Ac  ...................dr                       Rs. 9
             To Discount allowed                                  Rs. 9
  • -4
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