Page 189 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 14: Rectification of Errors

3. Furniture a/c Dr. 1,000 Notes
To Purchases a/c 1000
Furniture purchased was wrongly entered in the Purchases
book is rectifi ed.
4. Buildings a/c Dr. 5,000
To Buildings Repairs a/c 5000
Spent on extension of building was wrongly debited to
Building repairs a/c is rectifi ed.
5. Returns Inward a/c (Sales Returns) Dr. 1,200
Returns Outward a/c (Purchases Returns a/c) Dr. 1,200
To Mani Ram 2400
Goods returned by Mani Ram were entered in returns outward
book.
Illustration 2: Following are some accounting errors. Rectify them by making journal entries:
(i) Sales for `20000 made to Malvika was not entered in the Sales Book.
(ii) Salary of `7500 paid to Accountant Raman was debited to his personal account
(iii) Old furniture sold for `2800 was entered in the Sales Book.
(iv) Carriage paid `500 on purchase of a Machine was debited to Carriage A/c

(v) Cash `50000 paid to the creditor Atulya Ghosh was debited to Praful Ghosh’s A/c
Solution:

Journal
Date Particulars Amount Amount
(`) (`)
(i) Malvika Dr. 20,000
To Sales a/c 20,000
(Sale to Malvika omitted to be entered in Sales Book is
corrected)
(ii) Salary A/c Dr. 7,500
To Raman 7,500
(Salary paid to Raman was debited to his personal account
is now corrected)
(iii) Sales A/c Dr. 2,800
To Furniture A/c 2,800
(Old furniture sold was entered in the Sales Book is now
corrected)
(iv) Machine A/c Dr. 500
To Carriage A/c 500
(Amount paid for carriage on purchase of machine is deb-
ited to carriage A/c is now corrected)
(v) Atulya Ghosh Dr. 50,000
To Praful Ghosh 50,000
(Amount paid to Atulya Ghosh was debited to Praful Ghosh
is corrected)

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