Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 39)
When correcting the error in the journal due to the sales commission amount of £160 which was misposted for £400, which is the correct entry?
Debit sales account £160 and credit the trade payable amount and add £240 from the draft profit.
Debit trade payable account for £160 and credit the sales account and add £240 to the draft profit.
Debit sales account £240 and credit the trade payable amount.
Debit trade payable account £240 and credit the sales account.
Explanation
The sales commission was misposted, which means the sales are understated and also the trade payable account.
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