A cheque for GH₵ 7,330 was received from Rao after allowing him a discount of GH₵ 70. It was endorsed in favour of Sen in full settlement of GH₵ 7,500. The cheque was dishonoured, but no entry for dishonor was passed in the books. If this error located after preparation of final account then which of the following rectification entry is correct?

A cheque for GH₵ 7,330 was received from Rao after allowing him a discount of GH₵ 70. It was endorsed in favour of Sen in full settlement of GH₵ 7,500. The cheque was dishonoured, but no entry for dishonor was passed in the books. If this error located after preparation of final account then which of the following rectification entry is correct?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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