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 (ii) An amount of Rs. 500 withdrawn by the proprietor for his personal use has been debited to trade expenses Alc.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:

Rectification Entries:-

1) Salary A/c. Dr. 2000

To Ganesh A/c. 2000

2) Drawings A/c. Dr. 500

To Trade Expenses A/c. 500

3) S.Ravi A/c. Dr. 700

To M.Ravi A/c. 700

4) Purchase A/c. Dr. 600

Sales A/c. Dr. 600

To kali A/c. 1200

5) Jankiram A/c. Dr. 4000

To Sales A/c. 2000

To Purchase A/c. 2000