One of our customer's bank receipt agst sales has been accounted as cash sales and same time sales entry booked in parties A/c as credit sales in the PY. Finalization & filing of PY already over. Now Customer A/c showing, received amount as receivable.
Could you please suggest a way to rectify this error?
10 March 2020
If it was cash sale & if it has recorded as credit sale then that much cash/bank balance would have been under stated.
Now Pass an entry::
Cash A/c Dr
To Debtor
You can also adjust through prior period items
Bank A/c Dr To Sales A/c & Customer A/c Dr To Sales A/c (Net effect - Double entry on sales A/c & Customer a/c showing debit balance, which is not receivable)
22 May 2020
Since you have credited credit sale instead of cash sale and debited the customer account instead of Cash, you need to now DEBIT Credit Sales Account and CREDIT Customer Account.
CAclubindia
