Q.

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:

A. Adding ` 2,200 to closing stock
B. Deducting ` 1,800 from closing stock and deducting ` 2,200 each from debtors and sales
C. Adding ` 1,800 to closing stock and deducting ` 2,200 each from debtors and sales
D. Deducting ` 1,800 from debtors
Answer» C. Adding ` 1,800 to closing stock and deducting ` 2,200 each from debtors and sales
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