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rectification of entries

gopal (ACCOUNTANT) (116 Points)

17 December 2009

goods returned by the customer mr.X of Rs. 5650 has been posted in the return inward account as rs. 5560 and in Mr. X a/c as Rs. 6550.

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(Guest)

correct entry that should have been recorded--

sales return A/c Dr. 5650

To X's A/c 5650

BUT entry posted in return inward is 90rs short and posting in X's A/c is 900 rs more.. so in order to reach the correct level of entry we will debit sales return A/c by rs 90 and debit excees of 900rs in X's A/c.

Hence the composite rectified entry will be sales return A/c Dr. 90

X's A/c Dr. 900

To suspense A/c 990

Credit to suspense A/c is done to reverse the effect of differnce which was coming in trial balance due to wrong posting of entries. TB showed some diff. which was put to suspense A/c. Now wen the error is detected and rectified ,suspense A/c will not appear on account of passing rectiffied entry.