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.
Which of the following accounts has a credit balance?
Capital
Cash
Drawings
Premises
Correct answer is A
Normal balance is the side where the balance of the account is normally found. Asset accounts normally have debit balances, while liabilities and capital normally have credit balances. Income has a normal credit balance since it increases Capital .
Discount received account is a
Real account
Personal account
Nominal account
Profit and loss account
Correct answer is C
In accounting, nominal accounts are the general ledger accounts that are closed at the end of each accounting year. As a result, the nominal accounts are also referred to as temporary accounts. The closing process also means that each nominal account will start the next accounting year with a zero balance. Nominal Accounts are accounts related and associated to losses, expenses, income or gains.Examples include purchase account, sales account, salary A/C, commission A/C etc.
What is a ledger entry for the sale of plant and machinery on credit to Wilson?
Credit sales account and debit cash account
Credit plant and machinery account and debit Wilson's account
Credit sales account and debit Wilson's Account
Credit plant and machinery account and debit cash account
Correct answer is C
The sales and receipts classes of transactions are the typical journal entries, that debit accounts receivable (debtors) and credit sales revenue, and debit cash and credit accounts receivable in which the amount owed will be paid at a later date.
The accounting ledger for goods sold on credit are debit
Debtors account, credit sales account
Creditors account, credit sales account
Sales account, credit debtors account
Sales account, credit creditors account
Correct answer is A
Accounting and journal entry for credit sales include 2 accounts, debtor and sales. In case of a journal entry for cash sales, cash account and sales account are used. The person who owes the money is called a “debtor” and the amount owed is a current asset for the company. Since the goods were sold on credit, debtor acount will be debited (increase in the amount of money being owed to the business), and sales account will be credited.