Wholesale merchandise trader has prepared the trial balance which results an imbalance in the list of account balances was revealed which resulted in the creation of a suspense account with a Credit balance of RO 18,000. Investigations revealed that a business sold goods on Credit RO 13,000 made to Rafa Trading (Accounts receivable) has been correctly recorded in the Sales account, but posted as RO 31,000 in the debit side of Rafa Trading account. Which of the following rectification entry will be correct? a. Debit Sales RO 12,000 Credit Suspense account RO 12,000 b. Debit Rafa Trading (Accounts receivable) RO 18,000 Credit Suspense account RO 18,000 c. Debit Suspense account RO 6,000 Credit Rafa Trading (Accounts receivable RO 6,000 d. Debit Suspense account RO 18,000 Credit Rafa Trading (Accounts receivable) RO 18,000
Wholesale merchandise trader has prepared the trial balance which results an imbalance in the list of account balances was revealed which resulted in the creation of a suspense account with a Credit balance of RO 18,000. Investigations revealed that a business sold goods on Credit RO 13,000 made to Rafa Trading (Accounts receivable) has been correctly recorded in the Sales account, but posted as RO 31,000 in the debit side of Rafa Trading account. Which of the following rectification entry will be correct? a. Debit Sales RO 12,000 Credit Suspense account RO 12,000 b. Debit Rafa Trading (Accounts receivable) RO 18,000 Credit Suspense account RO 18,000 c. Debit Suspense account RO 6,000 Credit Rafa Trading (Accounts receivable RO 6,000 d. Debit Suspense account RO 18,000 Credit Rafa Trading (Accounts receivable) RO 18,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Wholesale merchandise trader has prepared the trial balance which results an imbalance in the list of account balances was revealed which resulted in the creation of a suspense account with a Credit balance of RO 18,000. Investigations revealed that a business sold goods on Credit RO 13,000 made to Rafa Trading (Accounts receivable) has been correctly recorded in the Sales account, but posted as RO 31,000 in the debit side of Rafa Trading account. Which of the following rectification entry will be correct?
a.
Debit Sales RO 12,000 Credit Suspense account RO 12,000
b.
Debit Rafa Trading (Accounts receivable) RO 18,000 Credit Suspense account RO 18,000
c.
Debit Suspense account RO 6,000 Credit Rafa Trading (Accounts receivable RO 6,000
d.
Debit Suspense account RO 18,000 Credit Rafa Trading (Accounts receivable) RO 18,000
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