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Marwan Limited Made Sales Net of VAT of £90,000 in May

Question 70

Multiple Choice

Marwan Limited made sales net of VAT of £90,000 in May. These net sales were posted in error to the credit side of the purchases account. What is the journal entry required to correct this error of principle?


A) Debit sales £90,000, Credit purchases £90,000.
B) Debit purchases £90,000, Credit sales £90,000.
C) Debit sales £180,000, Credit purchases £180,000.
D) Debit purchases £180,000, Credit sales £180,000.

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