How would you rectify the following errors in the book of Rama & Co.?
1. The total to the Purchases Book has been undercast by 100.
Illu
2. The Returns Inward Book has been undercast by # 50.
3. A sum of 250 written off as depreciation on Machinery has not been debited to Depreciation
Account.
4. A payment of 75 for salaries (to Mohan) has been posted twice to Salaries Account.
5. The total of Bills Receivable Book * 1,500 has been posted to the credit of Bills Receivable
Account.
6. An amount of 151 for a credit sale to Hari, although correctly entered in the Sales Book, has been
posted as 115.
7. Discount allowed to Satish * 25 has not been entered in the Discount Column of the Cash Book but
it has been posted to his personal account.
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Answer:
ANSWER:
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)
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