Page 135 - DMGT104_FINANCIAL_ACCOUNTING

Unit 7: Trial Balance

Solution: Notes
Journal Entries to rectify the errors
Dr. Cr.
S. No. Particulars L.F. Amount Amount
( ) ( )
(a) Raja Ram Dr. 5,000
To Purchases A/c 2500
To Sales A/c 2500
(A sale of goods to Raja Ram through the Purchases book
is rectified.)
(b) Salary A/c Dr. 800
To Hari Babu 800
(Salary wrongly debited in his personal A/c is rectified.)
(c) Furniture A/c Dr. 1,000
To Purchases A/c 1000
(Furniture purchased was wrongly entered in the
Purchases book is rectified.)
(d) Buildings A/c Dr. 5,000
To Buildings Repairs A/c 5000
(Sent on extension of building was wrongly debited to
Building repairs A/c is rectified.)
(e) 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 5: Rectify the following errors:
(a) Sales book was overcasted by 200.

(b) 100 received as rent from the tenant was debited to rent account.
(c) Received 500 from Sudan Mittal was credited to Sales book.
(d) Paid 200 as salary, but were debited 20 in Salary account.
(e) Paid 20 as repairs were recorded 25 in Repairs account.
Solution:

(a) As the sales book was overcast by 200, so sales A/c is to be debited by 200 in order to
rectify the error, this error affects only one account.
Dr. Cr.
S. No. Particulars L.F. Amount Amount
( ) ( )
(b) Suspense A/c Dr. 200
To Rent A/c 200
(Rent A/c was wrongly debited, hence rectified by 200.)
(c) Sales A/c Dr. 500 Contd...
To Sudan Mittal 500
(Sales A/c was wrongly credited in place of Sudan
Mittal, rectified.)
(d) Salary A/c Dr. 180
LOVELY PROFESSIONAL UNIVERSITY 129
To Suspense A/c 180
(Salary A/c was debited less by 180, hence rectified.)
(e) Suspense A/c Dr. 05
To Repairs A/c 05
(Excess in repairs A/c credited to rectify the error.)