Page 137 - DMGT104_FINANCIAL_ACCOUNTING

Dr.
Cr.

S. No.
( )
( )
(i)

To Office expenses A/c
(Error in office expenses A/c rectified.)
321
Dr.

(ii)
Roop
321
To Suspense A/c

(Error in Roop A/c rectified.)
Suspense A/c
Dr.
200
(iii)
Office Furniture A/c Particulars Dr. L.F. Amount 700 Amount 700
200
To Sales A/c
(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.)
Unit 7: Trial Balance
(v) Proprietor Drawings A/c Dr. 1000
To Trade expenses A/c 1000
(Error in trade expenses A/c rectified.)
Notes
(vi) Dividend A/c Dr. 200
To Rent A/c 200
(Error in dividend A/c rectified.)
(vii) Rakesh Dr. 135
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.)

Illustration 7: Rectify the following errors:
(i) A sale of furniture of 700 had been credited to Sales A/c.
(ii) 1000 paid as rent to landlord was debited to Landlord account.
(iii) Materials from store 1000 and wages 400 had been used in making tools and equipments
for use in our factory, but no adjustments were made in the books.
(iv) Purchase book was undercasted by 100.
(v) A sale of 500 to Gupta & Co. was credited to their account.
Solution:
Journal Entries to rectify the errors
Dr. Cr.
S. No. Particulars L.F. Amount Amount
( ) ( )
(i) Sales A/c Dr. 700
To Furniture A/c 700
(Sale of furniture wrongly credited to sales A/c hence rectified.)
(ii) Rent A/c Dr. 1000
To Landlord 1000
(Landlord A/c was wrongly debited hence rectified.)
(iii) Tools and Equipments A/c Dr. 1,400
To Materials A/c 1000
To Wages A/c 400
(Adjustment made for materials & wages used for making tools etc.)
(iv) Purchases A/c Dr. 100
To Suspense A/c 100
(Purchase book was under cast, hence rectified.)
(v) Gupta & Co. A/c Dr. 1000
To Suspense A/c 1000
(A sale which was wrongly credited in his A/c, is rectified.)

Illustration 8: Pass journal entries to rectify the following errors:
(i) A cheque of 700 received for damages had been deposited in the proprietor's private
bank account.
(ii) An item of purchase for 151 was entered in the purchase book as 15 and posted to the
supplier account as 51.

(iii) The sale book was undercasted by 100.

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