Question

Give the journal entries to rectify the following entries:
(i)Purchase book was overcast by Rs 1,000
(ii)Installation charges on new machinery purchased Rs 500 were debited to Sundry Expenses Account as Rs 50
(iii)Rather Shyam returned goods worth Rs 500 which was entered in the purchase return book
(iv)Goods taken by the proprietor for Rs 5,000 have not been entered in the books at all.​

Answer 1

Explanation:

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

(i)

Suspense A/c

Dr.

10,000

To Purchases A/c

10,000

(Purchase book was overcastted by Rs 10,000, now rectified)

(ii)

Purchases Return A/c

Dr.

1,000

To Suspense A/c

1,000

(Purchase return book was overcastted by Rs 1,000, now rectified)

(iii)

Purchases Return A/c

Dr.

100

To Suspense A/c

100

(Purchase return book’s balance was carried forward in excess of Rs 100, now rectified)

(iv)

Suspense A/c

Dr.

1,000

To Purchases A/c

1,000

(Purchase book’s balance was carried forward in excess of Rs 1,000, now rectified)