Which of following errors will be rectified through suspense account:(a) Sales return book undercast by $ 1,000.(b) Sales return by Madhu $ 1,000 not recorded.(c) Sales return by Madhu Rs 1,000. recorded as $ 100.(d) Sales return by Madhu $ 1,000 recorded through purchases returns book

Which of following errors will be rectified through suspense account:(a) Sales return book undercast by $ 1,000.(b) Sales return by Madhu $ 1,000 not recorded.(c) Sales return by Madhu Rs 1,000. recorded as $ 100.(d) Sales return by Madhu $ 1,000 recorded through purchases returns book

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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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Which of following errors will be rectified through suspense account:
(a) Sales return book undercast by $ 1,000.
(b) Sales return by Madhu $ 1,000 not recorded.
(c) Sales return by Madhu Rs 1,000. recorded as $ 100.
(d) Sales return by Madhu $ 1,000 recorded through purchases returns book

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