Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ‗H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:
ADeducting 1,800 from closing stock and deducting 2,200 each from debtors and sales
BAdding 1,800 to closing stock and deducting 2,200 each from debtors and sales
CAdding 2,200 to closing stock
DDeducting 1,800 from debtors
Correct answer
B. Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
Explanation
Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.