Sundry debtors in the trial balance are 43,000, including 2,200 due from H for goods sent on approval that cost 1,800. What rectification is required?
Correct answer B. Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
Explanation
Goods on approval are not yet sold, so the sale of 2,200 is reversed from debtors and sales, and the goods are added back to closing stock at cost of 1,800.
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