Accounting knowledge?
i think that should be debit to creditor-T.C. account $4000, which account should be credit? purchase, stock, trading or suspense?
or u hv another advice?
i'm looking for ur help. thx.
Answers:
Your convoluted explanation makes it difficult to answer your questions. I'll try to clarify it.
You bought goods for resale from T.C for $2,600 but the invoice showed an incorrect amount of $6,600. This is probably a typographical error, but the amount was recorded as in the invoice.
T.C. recorded a $6,600 debit in accounts receivable and credited sales revenue. To correct the error, T.C. has to credit accounts receivable $4,000 and debit sales revenue the same amount.
You should record a $2,600 debit in the inventory account, credit accounts payable $2,600 and notify T.C. of the error. Technically, you have a $4,000 receivable from T.C. but you need not record it on the assumption that the error will be corrected.
Alternatively, you may decide to debit inventory $2,600, credit accounts payable $6,600 and debit a receivable from T.C. of $4,000. When T.C. acknowledges the error, you credit the receivable $4,000 and debit accounts payable $4,000. This alternative is a waste of time and can be avoided. There is little point in recording erroneous data in your books. You would make these entries only if T.C. claims that there was no error, in which case you would have to litigate to resolve the issue.
Yes this is my idea, I want to know you record in computer or in the book but you record in the book of journal i think it's easy for you to correct it, it means that you delete your transaction that you record wrong and change your stock control sheet. If you record in the computer, it refer to the system that you use it can change record or not? If it can change you can go to this transaction and change the amount that you write wrong(6600$ to 2600$) and save it (it's ok). But if you can't change you can record sale the amount of goods and make note the you wrong to record it(for boss see it) or you can record inventory thought out or loss and make note too (wrong to record inventory).
Hi,
Accounting is such a tedious task, it includes a lots of calulation stuffs and everything. If you are serious on accounting,<!--I would suggest you to have a look at the below website.
http://financialaccounting.50webs.com/...
It contains almost everything about accounting,-->i hope atleast it covers the info that you need of. Hope this helps.
Thanks.
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