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Correction of error

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Correction of error

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • January 27, 2019 at 9:39 am #503394
    Avataryusra97
    Participant
    • Topics: 66
    • Replies: 61
    • ☆☆

    Sir purchase return and sales are credit balance? but sir sales should be a debit balance so is purchase return?

    2 question – A purchase return of $48 has been wrongly posted to the debit balance of the sales returns account , but has been correctly entered in the supplier’s account.
    which of the following statement about the trial balance would be correct?
    The debit side to be $96 more than the credit side..
    sir shouldn’t it be credit side to be $96 more than the debit side because purchase return is debited..so to correct it we will credit 48 (2 times) and in supplier account it has been debited..

    January 27, 2019 at 10:27 am #503410
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    A purchase return should be credited to purchase returns.

    The have debited an account instead. So they are missing a credit of 48, and also have a debit of 48 that should not be there.

    So the debits are 96 more than the credits.

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