Accounting for IGCSE & O level - Accounting Procedures (Section 5 - No. 32)
To correct an error the following adjustment needs to be made. The debit balance on the purchases account was underspent by $200. Which entry is correct?
Debit $200 to the purchases account.
Debit $200 to the suspense account.
Credit $200 to the suspense account.
Credit $200 to the purchases account.
Explanation
To correct the underspending, the purchases account needs to be debited.
Comments (0)
