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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Errors in bank account
The question is where a bank account is shown with errors in entries of debit and credit. Theres this one entry “ returns of goods purchased for cash 50$” so my question is shouldnt this entry be excluded from the bank account because it says says cash and there is nothing said about 50$ being credited to the bank so how do we know if the business deposited it into the bank. It can very well be in the cash drawer. If it said something about it being deposited in the bank then it is a debit entry but it says nothing like that
It depends on the whole context of the question. Purchased for cash strictly means that it is cash as opposed to affecting the bank.