Question

5. Prepare a format of bill of exchange from the followings. Drawer : Kashmira Shah, Partner M/S Shah and Shah, 2-C. Matruchaya Building, Akola. Drawee : Dhanashree Traders, Bangalore Road, Belgaum. (Signed by Jayashree, Partner) Payee : M/S Janki Traders, Akola. Amount: 64.500 Period of Bill : 3 months Date of drawing : 12 Sept. 2019 Date of acceptance: 15 Sept. 2019​

Answer 1

Answer:

This error will have double affect on trial balance as instead of credit to sales account, a debit is posted in purchase account. To rectify the error, following rectification entry need to be passed in books of account:

Santhanam A/c Dr. 2000

To Sales A/c 1000

To Purchase A/c 1000