The accounting entry to correct sales day book overcast i...
The accounting entry to correct sales day book overcast is?
Debit sales account and credit debtors account
Debit suspense account and credit sales account
Debit debtors account and credit suspense account
Debit sales account and credit suspense account
Correct answer is D
Remember an overcast is a situation where a customer pays an amount higher and above the real value for goods, due to an error in the total amount calculated in the invoice. The suplier is expected to send a credit note to the customer, noting an error in the invoice and accepting to refund the excess amount to the customer. In the sales day book, the sales account will be debited (because a sale had occur) and a suspense account credited.
A suspense account is an account in the books of an organization in which items are entered temporarily before allocation to the correct or final account.
A debit entry in the cash account and a corresponding credit in Alieu's account indicate a ...
What is the value of the authorized share capital? ...
Goods returned to a supplier is ...
Use the following information to answer the given question \(\begin{array}{c|c} & N \\ \hline...
Which of these will not appear in the preparation of control account? I. Bad debts II. Discounts ...
The transaction that completes its double entry in the same ledger account appears in ...
What does liquidity ratio measure? ...
In a not-for-profit making organization, the cash book is summarized in the form of ...