Question

)
Give journal entries (with narratio) to rectify the following errors located in the books of a
Trader after preparing the Trial Balance:
(1) An amount of * 4,500 received on account of Interest was credited to Commission
Account.
(ii) A sale of 2,760 was posted from Sales Book to the Debit of M/s Sobhag Traders at *
2,670.
(iii) * 35,000 paid for purchase of Air conditioner for the personal use of proprietor debited
to Machinery A/c.
(iv) Goods returned by customer for 5,000. The same have been taken into stock but no
entry passed in the books of accounts.​

Answer 1

Answer:

1. Commission a/c -Dr 4500

To Interest received a/c 4500

(Being Interest received wrongly posted to commission now rectified )

2. Sobhag Traders a/c -Dr 90

To Suspense a/c 90

(Being correction of error by which Trade receivable a/c is undercast now rectified )

3.Drawings a/c -Dr 35000

To Machinery a/c 35000

(Being cash taken by proprietor for personal use debited to Machinery a/c now rectified )

4. Return Inwards a/c -Dr 5000

To Customer a/c 5000

( Being recording of unrecorded returns)

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