Rectify the error 'Cash sale to Anil of ₹10,000 posted as ₹1,000'.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Sales account will be credited by ₹9,000.
Cash sale is recorded in the cash book with the correct amount but posting is short by ₹9,000. As the sales is against cash so sales will be credited by ₹9,000.