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Good evening,
I have a difficulty with understanding this.
What should be the correct double entry?
A rent bill of 1200 paid. It was debited to the rent account as 1400 and a casting error. On the sales account has resulted in sales being overstated by 200.
Could you please explain to me why we have to Debit sales by 200?
I know that we have to reduce sales by 200, but I do not understand how it is connected with rent account ( it is expense)…
ThanksAssuming that you have typed the question correctly, then there is certainly no connection between the sale account and the rent account.
The rent account needs correcting (by crediting with 200).
Completely separately, the sales needs correcting by debiting by 200.
I don’t know where on earth you found this question, but does the answer not give explanations? If not, then you really should be using a Revision Kit from one of the ACCA approved publishers 🙂 )
Thank you very much for your comments. I found this question on page 277 text book from Kaplan.. I think your lectures are better 😉
Thank you for your comment (and if you are watching the lectures, then it is the Revision Kit that is much more important than the Study Text because it is vital you get lots of practice at exam standard questions. The questions in the Revision/Exam Kit are all exam standard, whereas not all the question in the Study Text are.)
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