1.

Rectify the entry :- Bill for rs. 820 received from Ramesh for repairs to machinery was entered in the purchase book as Rs. 720. explain all the entries​

Answer»

ing JOURNAL entryExplanation:Repair account Dr. 820Repair account Dr. 820To purchase account 720To suspens account 100(Being repair of machinery of 820₹ was recorded as a purchase of 720₹ , Now has been rectified)Repair account is an expense for the BUSINESS so while rectifying the entry it will debited by 820₹.purchase account was wrongly debited now while rectifying this entry we will CREDIT the purchase account by 720₹.The remaining balance of these TWO accounts is 100₹, and this remaining amount will be credited into the suspense account.



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