journal entry

Joined
Jan 13, 2015
Messages
5
Reaction score
0
Country
Bangladesh
jenny has recorded the following journal entry:
Dr Purchase $1500
Cr Stationery $1500

what is the correct narrative for jenny's journal entry?
A. being cash purchase of Stationery
B. being credit purchase of Stationery
C. Being correction of error- purchase originally recorded as stationery
D. Being correction of error- Stationery originally recorded as purchase.

The given ans is c. But, i think c and d can be correct ans. Please let me know why d is incorrect.
 

Triest123

VIP Member
Joined
Feb 12, 2012
Messages
269
Reaction score
51
jenny has recorded the following journal entry:
Dr Purchase $1500
Cr Stationery $1500

what is the correct narrative for jenny's journal entry?
A. being cash purchase of Stationery
B. being credit purchase of Stationery
C. Being correction of error- purchase originally recorded as stationery
D. Being correction of error- Stationery originally recorded as purchase.

The given ans is c. But, i think c and d can be correct ans. Please let me know why d is incorrect.
=> The key point of the adjusted entry is "DR purchase", that means "No" purchase was booked initially.

"The initial wrong entry made was Dr Stationery Cr Bank (or Accounts payable)
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top