Question 12
Correction of Errors and Suspense Account₦100 received from Latifat was entered on the payments side of the cash book with the double entry completed in her account. The correcting journal entries are
- A.debit Latifat's account, credit cash book with ₦100
- B.Credit Latifat's account, debit cash book with ₦100
- C.credit Latifat's account, debit cash book with ₦200
- D.debit Latifat's account, credit cash book with ₦200
- E.credit Latifat's account, debit Suspense account with ₦200.
Show the answer and explanation
Answer: C (credit Latifat's account, debit cash book with ₦200)
Explanation
Cash was credited ₦100 instead of debited, and Latifat debited instead of credited; reversing and re-posting needs ₦200 each way.