Page 136 - DMGT104_FINANCIAL_ACCOUNTING

Dr. Cr.
S. No. Particulars L.F. Amount Amount
( ) ( )
Financial Accounting
(b) Suspense A/c Dr. 200
To Rent A/c 200
(Rent A/c was wrongly debited, hence rectified by 200.)
Notes (c) Sales A/c Dr. 500
To Sudan Mittal 500
(Sales A/c was wrongly credited in place of Sudan
Mittal, rectified.)
(d) Salary A/c Dr. 180
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.)

Illustration 6: Rectify the following errors:
(i) 700 paid for the purchase of new office furniture charged to office expenses A/c.

(ii) Goods worth 174 were sold to Roop but latter A/c was actually credited by 147.
(iii) Sales Day book was undercasted by 200.
(iv) The total of the discount column on the debit side of the Cash book was short by 30.

(v) An amount of 1000 withdrawn by the proprietor for his personal use was debited to
Trade expenses A/c.
(vi) 200 was received on account of rent but was credited to dividend A/c.

(vii) Goods sold to Mr. Rakesh for 705 but entry was made for 570.
(viii) An amount of 325 owing by Mukesh was omitted from the list of Sundry debtors.
Solution:
Journal Entries to rectify the errors
Dr. Cr.
S. No. Particulars L.F. Amount Amount
( ) ( )
(i) Office Furniture A/c Dr. 700
To Office expenses A/c 700
(Error in office expenses A/c rectified.)
(ii) Roop Dr. 321
To Suspense A/c 321
(Error in Roop A/c rectified.)
(iii) Suspense A/c Dr. 200
To Sales A/c 200
(Error in sales A/c rectified.)
(iv) Discount A/c Dr. 30
To Suspense A/c 30
(Discount columns on debit side short by 30 corrected.)
(v) Proprietor Drawings A/c Dr. 1000
To Trade expenses A/c 1000
(Error in trade expenses A/c rectified.)
(vi) Dividend A/c Dr. 200 Contd.. .
To Rent A/c 200
(Error in dividend A/c rectified.)
(vii) Rakesh Dr. 135
130 LOVELY PROFESSIONAL UNIVERSITY
To Sales A/c 135
(Error in Rakesh and Sales A/c rectified [ 705 – 570].)
(viii) Mukesh (Sundry Debtors) Dr. 325
To Suspense A/c 325
(Error in Mukesh A/c rectified.)