Question

Purchased goods from saloni rs.2,000 but was recorded in sales account as rs.3,600. in rectifying entry, saloni account will be debited with:

(a) rs. 1, 600
(b) rs. 1, 800
(c) rs.3, 150
(c) rs.2, 475

Answer 1

The Saloni account will need to be debited by Rs. 1,600 to rectify the incorrect recording of the purchase. This corrects both the overstatement in the Sales account and reflects the transaction with Saloni accurately.

Step-by-step explanation:

The original transaction was recorded incorrectly, with a higher amount put in sales and the purchase not recorded at all. Therefore, the rectifying entry requires two adjustments: reducing the Sales account and increasing the Saloni account (the creditor). The amount by which the Sales account was overstated is Rs. 1,600 (Rs. 3,600 recorded - Rs. 2,000 actual purchase). The Saloni account needs to be debited by Rs. 1,600 to correct for the purchase that was not recorded.

For the mistake in the Sales account - reduce the sales by the amount over-recorded Rs. 1,600. To correct the omission of the transaction with Saloni, debit the Saloni account by the same amount, Rs. 1,600, reversing the effect of the earlier mistake. This ensures that Saloni's account reflects the correct amount she is owed and that the sales figures are accurate.