Question

freight paid on machinery rs5600 was posted to freight account as rs6500.10% depreciation is charged on this machinery.Rectify the error with journal entry.​

Answer 1

Answer: freight a/c dr 900

Depreciation a/c dr 560

To suspense a/c 1460

Explanation:

Answer 2

Explanation:

Here, Freight is direct expense. Hence the journal will be

         

            Machinery a/c                                dr                        5600

            Suspense a/c                                 dr                         900

                         To   Profit and loss adjustment a/c                            6500

           (correction of error by which freight paid for a machine 5600 was posted to freight a/c at 6500 instead of capitalizing it)

                                              SUSPENSE A/C

To Profit and loss adjustment a/c        900

                              Profit and loss adjustment a/c

                                                          By Suspense a/c                            900