Accounting for IGCSE & O level - Accounting Procedures (Section 3 - No. 31)
The error means that the balance include due trade payables accounts for $449 and the purchases account have $400 more than they should have from $14,449 in the sorted balance. To select the error both balances had to be reduced by $449. What accounting entry required for the same?
Debit Purchases Account and Credit Trade Payables account $400
Debit Trade Payables Account and Credit Purchases Account $400
Debit Purchases Account and Credit Trade Payables account $449
Debit Trade Payables Account and Credit Purchases Account $449
Explanation
Debit Trade Payables Account and Credit Purchases Account $449
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