Pass the rectifying entries to correct the following errors Mr-02158
This subjective question is related to the book/course
vu mgt611 Business & Labor Law.
It can also be found in
vu mgt611 Mid Term Solved Past Paper No. 2.
Question 1: Pass the rectifying entries to correct the following errors:
Mr. "Ali" purchased goods of Rs. 1,500 on cash, but omitted to enter in the books of accounts.
An amount of Rs. 5,000 received from Mr. Amir, was credited to the account of Mr. Ameer.
Goods returned worth Rs. 500 to Mr. "B" wrongly debited to sales Account.
A purchase of goods from Mr. "B" of Rs. 400 has been wrongly debited to Furniture Account.
Furniture purchased on cash Rs. 8,000 posted as purchases.
Rectification Entry on the date of discovery:
Debit: Purchase Account 1,500
Credit: Cash Account 1,500
Credit: Mr. Ameer 5,000
Debit: Mr. Amir 5,000
Credit: Mr. Ameer 5,000
Debit: Mr. B Account Rs. 500
Credit: Sales Account Rs. 500
Mr. "Ali" purchased goods of Rs. 1,500 on cash, but omitted to enter in the books of accounts.
An amount of Rs. 5,000 received from Mr. Amir, was credited to the account of Mr. Ameer.
Goods returned worth Rs. 500 to Mr. "B" wrongly debited to sales Account.
A purchase of goods from Mr. "B" of Rs. 400 has been wrongly debited to Furniture Account.
Furniture purchased on cash Rs. 8,000 posted as purchases.
Answer:
Rectification of Errors
Error 1.
A purchase of goods of Rs. 1,500 on cash was omitted by mistakeRectification Entry on the date of discovery:
Debit: Purchase Account 1,500
Credit: Cash Account 1,500
Error 2
Debit: Mr. Amir 5,000Credit: Mr. Ameer 5,000
Debit: Mr. Amir 5,000
Credit: Mr. Ameer 5,000
Error 3
Goods returned worth Rs. 500 to Mr. "B" wrongly debited to sales Account.Debit: Mr. B Account Rs. 500
Credit: Sales Account Rs. 500
