Hey student,
The answer to your question is-
Rectification is.
1- machinery account debit
To wages account.
2- Prasad's account debit
To cash account.
We'll right the correct entry as it is and in the incorrect entry we will debit the credit entry and credit the debit entry.
All the best student,
Hope this helps you.
Question : On dissolution of a firm, debtors Rs. 34,000 were shown in the Balance Sheet. Out of this, Rs. 4000 became bad. One debtor became insolvent. 70% was recovered from him out of Rs.10,000 Full amount was recovered from the balance debtors. On account of this item, the loss in the realisation account will be :
Option 1: Rs 51,000
Option 2: Rs 15,000
Option 3: Rs 35,000
Option 4: Rs 7,000
Question : At the time of dissolution of a firm, Debtors were Rs. 34000 out of which Rs. 1000 became bad and the rest realised 60%. Which account will be debited and by how much amount?
Option 1: Realisation Account by Rs. 19800
Option 2: Profit and Loss Account by Rs 500
Option 3: Cash Account by Rs. 19800
Option 4: Debtors Account by Rs. 19800
Question : On dissolution of a firm, debtors Rs 34,000 were shown in the Balance Sheet. Out of this Rs 4000 became bad. One debtor became insolvent. 70% were recovered from him out of 10,000. The full amount was recovered from the balance debtors. On account of this item, the loss in realisation account will be:
Option 1: 5,100
Option 2: 7,000
Option 3: 3,500
Option 4: 2,000
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