- This topic has 3 replies, 2 voices, and was last updated 6 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello sir
Cash of 2800 paid for plant repairs was correctly accounted for in the cash book but was credited to the plant asset account. What wrong entry they have done and what would be the rectified entry.The correct entry should have been: Dr Plant repairs account, and Cr Cash
What they have done is Cr Plant asset account, and Cr Cash
Therefore to correct the error, they need to Dr Plant repairs with 2,800; Dr Plant asset with 2,800; and credit suspense account with 5,600.
I do suggest that you watch my free lectures on this.
The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Correction of errors’ is closed to new replies.