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The bookkeeper of Peri made the following mistakes:
Sales returns of $384 were credited to the purchases returns account.
Purchases returns of $296 were debited to the sales returns account.
Which one of the following journal entries will correct the errors?can you help me this question
Thank you in advanceWhy are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers.
Sales returns should have been debited to sales returns.
So to correct it:Dr Purchase returns (to cancel the wrong entry)
Dr Sales returns (to make the correct entry)Purchase returns should have been credited to purchase returns
So to correct it:Cr Sales returns (to cancel the wrong entry)
Cr Purchase returns (to make the correct entry).I would guess that the choices available in the question just do the net entry to each of the sales returns and purchase returns accounts, and of course the ‘missing figure’ to complete the double entry goes to the suspense account.
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