suspense ac.

The correct entry should have been DR Receivables 2,950; CR Sales 2,500; CR Sales tax 450 So to correct the entry that was actually made, we need the following: DR Sales 450 DR Sales tax 81 CR Suspense 531 This means that A is correct. However, are you sure that you copied the question correctly? If you did, then it seems that the answer in your book is wrong.

thank you teacher, i lost much time on this question. yes, i am sure i copied correctly. Thank you.

You are welcome :-)

Hello! Please, someone explain me what does exactly mean this: The purchase returns day book included a sales credit note for $230 which had been entered correctly in the account of the customer concerned, but included with purchase returns in the nominal ledger. I also want to ask : Is that the correct entry: Dr Sales returns $230 Cr Receivables $230 The entry that has been made: (is it that): Dr Purchase returns $230 Cr Receivables $230 And it is shown that the correction in the journal is: Dr Purchase returns $230 Dr Sales returns $230 Cr Suspense a/c $460 I don't understand why we debit again Purchase returns in the journal? Or I completely don't understand this question??? Please, help me :) Thank you in advance :)

can the tutor help darina pls because this question also confuses me thank you

The correct entry would have been DR Sales returns CR Receivables Because it has been included in purchase returns, the entry they must have made is CR Purchases returns CR Receivables. So to correct it they need to DR Purchase returns (to remove the wrong entry) and DR Sales returns (which is what should have happened). The CR for both is to the suspense account.