Question

Following are some accounting errors. Rectify them by passing journal entries. (i) Sales book is undercast by Rs.5,000 (ii) Sales return book is undercast by Rs. 500 (iii) Purchases book is overcast by Rs. 10,000 Gv) Salary of Rs.5,000 paid to Rahul was not posted to Salaries account.

Answer 1

Answer:

By passing journal entries, they can be rectified as follows. Suspend a/c dr 5000 to sales a/c 5000 (as the sales book undercast is rectified). (2)sales returns a/c dr 500 to suspend a/c 500 (as the sales book undercast is rectified). (3)suspend a/c dr 10000 to purchases a/c 10000 (as the purchases book overcast is rectified). (4) Rahul a/c dr 5000 to salaries a/c 5000 (is it is the salary of Rahul). Journal entry is the initial step for every accounting cycle and is used for maintaining all events and business transactions in an accounting system.