Other

Question

A trader purchased stationary for office usa. This was antered in the ledger as

purchase of gooda for resalo.

Which entry will correct this error?

A

C

D

account debited

purchases

stationery

stationery

sales

account credited

stationery

purchases

sales

purchases

Answer

Debit "Purchases" and Credit "Stationery".

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The original entry was incorrect as it was entered as "Purchase of Goods for Resale" instead of "Purchase of Stationery". To correct this error...