NECO Book Keeping 2015 Objective — Question 6

Question 6 of 40 from the National Examinations Council (NECO) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.

To correct this error: debit

A. Customers Account #2,000; credit Cash Account #2,000
B. Cash Account #2,000; credit Customers Account #2,000
C. Customers Account #4,000; credit Cash Account #4,000
D. Cash Account #4,000; credit Customers Account #4,000Correct

Explanation

To correct a complete reversal error, the correcting entry must be for double the original amount: Debit Cash Account #4,000 (to cancel the wrong credit of #2,000 and record the correct debit of #2,000), and credit Customers Account #4,000.

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