Problem With Journal Entry.

[Dandy Egharevba]

The following errors were made.
Discount allowed of $333 was credited to discount received account.
Discount received of $222 was debited to discount allowed account.
Question:which journal entry will correct these errors?
Please,explain to me clearly.
Dandy.

[ABBAS ALI]

Reverse the entry.

[Tammi]

Hi, Dandy,

The accountant should do:
Dr. discount allowed - $333
Cr. SLCA - $333
and
Dr. PLCA - $222
Cr. discount received - $222

But the accountant did:
Cr. discount received - $333
Cr. SLCA - $333
Dr. suspense account -$666
and
Dr. PLCA - $222
Dr. discount allowed - $222
Cr. suspense account - $444

Now the corrections:
Dr. discount received - $333 (to eliminate this entry)
Dr. discount allowed - $333 (to write the ommited entry)
Cr. suspense account - $666
and
Cr. discount allowed - $222 (to eliminate this entry)
Cr. discount received - $222 (to write the ommited entry)
Dr. suspense account - $444

Hope you understand this, if you have some more questions feel free to post them

Regards

[Dandy Egharevba]

Hi Tammi,
Thanks a million for your response to my post.It is very clearer to me now.journal entry has been a difficult task for me all the time.You were very clear your explanation.Thanks.I hope i will find accounting more interesting now than before since there is a forum of this type.
Dandy.

[wumzy11]

This is a short code that will help in deciding what items should be a credit or debit entry.DEAL(debit expenses, assets and loss) and CLIP(credit liability, income and profit.). in the case of discount allowed, it is an expense on an organisation and should therefore be debited, while a discount received is an income and should be credited.

[Sonal]

Very Good Wumzy11. Really a nice tip given by you. Keep it up.

[WINGWEI]

that＇s a great idea to memorised the side of the account。 Thanks^^