Page 148 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting

Notes (b) A credit sale of 127 to Mr. Chandra has been posted to the debit of Mr. Kuchhal’s
account from the Sales Day book.
(c) A payment of 96 for white washing the office has been charged to Buildings accounts.

12. Rectify the following Errors:
(a) Sales to Vinod 143 posted to his account as 134.
(b) Sales to Vinod 143 debited to his account as 134.
(c) Sales to Vinod 143 credited to his account as 134.

13. Rectify the following Errors:
(a) Wages paid for the construction of office debited to wages account 1,500.
(b) Cartage paid for the newly purchased furniture 10 posted to cartage account.
(c) Furniture purchased on credit from Ram for 300 posted as 30.

(d) Sales to X 400 posted to Y’s account.
(e) Wages paid 2,550 were recorded in the cash book as 2,505.
(f) Purchases from Y 1,002 were omitted from the books.
14. There was difference in the trial balance of Sri Arihant which was put to a newly opened
suspense account. Subsequently the following mistakes were discovered. Pass journal
entries to rectify them and ascertain the difference in the trial balance.

(a) Materials Costing 1700 in the erection of the machinery and the wages for it
amounting to 1,400 were included in the purchases account and the wage account
respectively.
(b) Goods sold under credit terms 16,900 to music were recorded properly in the sales
book but were debited to his account as 19600 and carriage outward and freight
paid 700 chargeable from him were posted to sales expenses account.
(c) Sales return by Yogeshwar 2300 were correctly recorded in the sales return book
from where they were debited to Yogeshwar’s account by 32.
(d) Old furniture originally purchased for 1800 written down to 1100 was sold for
1700 and was credited to furniture account.

(e) Machinery purchased on credit 17000 was recorded in purchases book and transport
charges for the machine 1200 were debited to trade expenses account.

Answers: Self Assessment

1. Trial Balance 2. Credit side

3. Credit side 4. Error of commission
5. Error of omission 6. Error of principle
7. Trial balance 8. Debit side
9. Credit side 10. (d)
11. (c) 12. (d)

13. (b) 14. (b)
15. (b)

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