Question

Financial Accounting 4.30 5. Rectify the following errors: (i) Rs. 2,000 paid on account of salary to the cashier Ganesh, stands debited to his personal account. (ii) An amount of Rs. 500 withdrawn by the proprietor for his personal use has been debited to trade expenses Alc. (iii) Rs. 700 received from M. Ravi has been credited to S. Ravi. (iv) A purchase of goods from Kali amounting to Rs. 600 has been wrongly entered through the sales book. (V) A credit sale of Rs. 2,000 to Jankiram has been wrongly passed through the purchases book ​

Answer 1

Explanation:

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