The purchase of goods from Hari worth ₹6,000 was wrongly posted as ₹5,000. This is an error of the third stage, i.e., after final accounts. My doubt is whether the wrong amount was posted only in Hari

Question

Enna · Answer

P&l adjustment A/ C Dr. 1000 To suspense A/ c 1000

Lakshya · Answer

No, in the third stage we open a P&L adjustment a/c in we record all rectifications of nominal accounts and it's balance is transferred to captial a/c

Avinash · Answer

@Lakshya So, we don’t have to make any assumptions?

Lakshya · Answer

The rectification entry to be passed is P&L Adjustment A/c. Dr 1000 To Hari 1000

The purchase of goods from Hari worth ₹6,000 was wrongly posted as ₹5,000. This is an error of the third stage, i.e., after final accounts. My doubt is whether the wrong amount was posted only in Hari

4 answers

Ask your doubt in the Studycaller app