Page 194 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes 8. Pass necessary journal entries to rectify the following errors:

Sale of an old machine for `4500 was posted to Sales account
Rent of proprietors residence of `12000 was posted to Rent Account.
A credit to Brij Mohan of `6750 was posted to his account as `4750
Furniture purchased from M/s Decorates for `22500 was entered in the Purchases Book
Salary paid to the accountant Sushil Gupta of `6500 was debited to his personal Account.

9. Give two examples each of the one sided and doubles sided errors. How are they
corrected?

10. Is the agreement of a Trial Balance a conclusive proof of accuracy of ledger accounts? If not,
what are the errors which remain undetected by the Trial balance?

Answers: Self Assessment

1. Suspense A/c 2. temporary arrangement
3. Suspense A/c 4. rectifi cation

5. two sided error 6. Trial balance
7. Debit side 8. True
9. True 10. False

14.8 Further Readings

Khan and Jain, “Management Accounting”.
M. P. Pandikumar, “Accounting & Finance for Managers”, Excel Books, New
Delhi.
R. L. Gupta and Radhaswamy, “Advanced Accountancy”.
S. N. Maheswari, “Management Accounting”.

V. K. Goyal, “Financial Accounting”, Excel Books, New Delhi.

www.futureaccountant.com

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