If stationery bought for N200 has been entered as N2000. To correct this error?
-
A.
debit stationery with N2,200 -
B.
credit stationery with N1,800 -
C.
debit stationery with N1,800 -
D.
credit stationery with N2,200
Correct Answer: Option C
Explanation
To correct the error, we have to debit the amount in excess so as when it is being calculated, the debit side would balance with the credit side.
Remember income in recorded on the debit side while expenses are recorded on the credit side. Since stationary was bought, (expense) it is assumed that it was recorded on the credit side. hence we will debit the amount in excess