1. A payment on account of $ 500 to a creditor was debited to accounts payable $320 and credited to cash $320

2. the purchase of supplies on account for $550 was debited to equipment $55 and credited to accounts payable $55

3. a $300 withdrawal of cash for r. Masi's personal use was debited to salaries expense $300 and credited to cash $300


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Quote:

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Originally Posted by sam33

1. a payment on account of $ 500 to a creditor was debited to accounts payable $320 and credited to cash $320

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What JE was done?
Dr. AP 320
Cr. Cash 320

What should have been done?
Dr. AP 500
Cr. Cash 500

What needs to be done to correct this?
Dr. AP 180
Cr. Cash 180

500-320 = 180