Journal for a credit that should be a debit?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Scenario:<BR><BR>To correct an error in the trial balance it was found that the following happened:<BR><BR>£200 of purchases was returned, it was correctly entered in to the subsidiary ledger and also the PLCA, but in the Purchase Returns Ledger it was entered as a debit, I therefore have to reverse the debit then credit the £200 I think it goes something like this:<BR><BR>DR 200 â?? Not sure which account<BR>CR 200 â?? Purchase returns<BR>DR 200 â?? Suspense Account<BR>CR 200 â?? Purchase Returns<BR><BR>Or am I way out? <BR><BR>Second one:<BR><BR>£3,000 was correctly debited at the bank however no credit entry was ever made. Is this one like this?<BR><BR>CR 3000 â?? SLCA<BR>DR 3000 â?? Suspense account<BR><BR>Any help greatly appreciated..<BR><BR>Nick<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Journal for a credit that should be a debit?

    Hi Nick<BR><BR>Thanks for your reply, you sound very busy, I am quite organised at the mo, just finished portfolio, and have next week off to revise, but on the day who knows??????<BR><BR>In answer to your query, sounds ok to me, but I would Cr Purchase Returns £400 and Db Suspense £400, but then again it's been a long and hectic day, so I could be wrong! I must admit journals are my weakness as I get a bit tied up with them, our tutor suggests we write down what happened originally then write down the solution, I did this and came up with the above answer!<BR><BR>All the very best with your exams/job hunting/relocating etc etc etc............<BR><BR>Tracy <img src="i/expressions/face-icon-small-smile.gif" border="0"><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Journal for a credit that should be a debit?

    1st one, I'd do as Tracy has done.<BR><BR>2nd one, I'd credit sales & debit suspense.<BR><BR>You wouldn't credit SLCA on the 2nd one because it's debiting into bank (hence it's a cash sale) and not on credit.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Journal for a credit that should be a debit?

    Again - i think this is unit 3 sim practice that i have just done<BR><BR>I think you have to Credit the Capital account - i'm sure it says that in the email provided?<BR><BR>let me know

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