d. Rs 3,750 paid for wages to workmen for himaking showcases was charged to
the wages account.
e. Purchase of Rs 670 was posted to creditor’s account as Rs 600.
f. A cheque for Rs 200 received from Pradeep was dishonoured and was
debited to the ‘Printing and Stationery account’.
g. Rs 10,000 paid for purchase of a motor cycle for the proprietor was debited
to miscellaneous expenses account.
h. An amount of Rs 10,000 owed by Deepak was omitted from sundry debtors.
i. Daman paid Rs 6,700 but her account was wrongly credited with Rs 10,700.
Answers
Explanation:
d. Payment of salary is an expenses. This need to be debited to salary expenses account not to the person to whom the salary is paid.
Rectification entry need to be passed as under:
Salaries A/c Dr. 3750
To Dhawan A/c 3750
e. Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
(i)
Suspense A/c
Dr.
10,000
To Purchases A/c
10,000
(Purchase book was overcastted by Rs 10,000, now rectified)
(ii)
Purchases Return A/c
Dr.
1,000
To Suspense A/c
1,000
(Purchase return book was overcastted by Rs 1,000, now rectified)
(iii)
Purchases Return A/c
Dr.
100
To Suspense A/c
100
(Purchase return book’s balance was carried forward in excess of Rs 100, now rectified)
(iv)
Suspense A/c
Dr.
1,000
To Purchases A/c
1,000
(Purchase book’s balance was carried forward in excess of Rs 1,000, now rectified)
f.
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
i) Mridula’s A/c Dr. 5,000
To Sales A/c
5,000
(Credit sales to Mridula were omitted to be recorded)
ii) Purchases A/c Dr. 8,000
To Nayna’s A/c
8,000
(Credit purchases from Nayna were omitted to be recorded)
iii) Priya’s A/c Dr. 12,000
To Purchases Return A/c
12,000
(Goods returned to Priya were omitted to be recorded)
iv) Sales Return A/c Dr. 10,000
To Rashi’s A/c
10,000
(Goods returned from Rashi were omitted to be recorded)
g. When goods are withdrawn by the proprietor, goods are going out of the business i.e., purchases account has to credited. The journal entry for this is -
Drawings A/c Dr 10000
To Purchases A/c 10000
Instead of this entry, the incorrect entry passed was -
Drawings A/c Dr 10000
To Sales A/c 10000
Here, instead of purchase account sales account has been credited whereas drawings account has been rightly debited , so to cancel this entry and rectify it, sales account which was credited is to be debited to cancel the entry, and purchases account will be credited fro the original entry. Since drawings account is rightly debited, no change will be made regarding drawings account. The rectified journal entry thus becomes -
Sales A/c Dr 10000
To Purchases A/c 10000
h.
i. Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
(i)
Suspense A/c
Dr.
10,000
To Purchases A/c
10,000
(Purchase book was overcastted by Rs 10,000, now rectified)
(ii)
Purchases Return A/c
Dr.
1,000
To Suspense A/c
1,000
(Purchase return book was overcastted by Rs 1,000, now rectified)
(iii)
Purchases Return A/c
Dr.
100
To Suspense A/c
100
(Purchase return book’s balance was carried forward in excess of Rs 100, now rectified)
(iv)
Suspense A/c
Dr.
1,000
To Purchases A/c
1,000
(Purchase book’s balance was carried forward in excess of Rs 1,000, now rectified)