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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Correction of errors
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.
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Thanks sir
You are welcome 🙂