Advertisements
Advertisements
Question
What does a 'rectifying entry' in accounting mainly do?
Options
Records new assets
Cancels the wrong entry and records the correct one
Transfers money between bank accounts
Shows regular business expenses
MCQ
Advertisements
Solution
Cancels the wrong entry and records the correct one
Explanation:
A rectifying entry cancels the effect of the wrong entry and then records the correct transaction, updating the accounts properly.
shaalaa.com
Is there an error in this question or solution?
