I am doing a accounting course i stuck with journal entries and the revised trial balance?
i been given a sales invoice for 139.52 net ,24.42 vat,163.94 gross ,but this invoice has been entered on the wrong side of the accounts ,how would i correct this please can u help
Other - Taxes - 2 Answers
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Answer 1 :
hey isn't accounting fun! ok jrnls: sales control account dr £327.88 sales: cr £279.04 vat: cr £48.84! good luck! u have to cr/dr double the amount
Answer 2 :
Let's start from the beginning. What you've done was: Dr Sales 139.52 Dr Vat 24.42 Cr A/cs receivable 163.94 and now you need to correct that. You can do it in 2 stages or in 1 but for clarity, I'll do it in 2 stages for you. 1st you need to totally reverse the above, as if it never happened. So you: Dr A/cs receivable 163.94 Cr Sales 139.52 Cr VAT 24.42 and now your slate has been wiped clean. You then journalise what you should have done in the 1st place: Dr A/cs receivable 163.94 Cr Sales 139.52 Cr VAT 24.42 and you're done. With experience, you can do it in 1 go, by merely doubling the amounts in the entries, but the debit is to A/cs receivable aka Trade debtors aka Debtors control, but NOT Sales control which is a sales a/c. I think the answerer above had a typo there.
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