Accountancy, asked by gurwinderdandiwal030, 6 months ago

Pamanand & Co. started business with cash
2. Purchased goods on credit
3. Sold goods on credit costing 6.000 for
4. Withdrew cash for personal use
5 Withdrew goods for daughter's marriage costing
6. Purchased goods on cash
7. Paid for office expenses
8. Sold goods for cash (cost price 10,000)
9. Received cash from debtors
10. Paid cash to creditors
11. Purchased fumiture​

Answers

Answered by ankitkumar55826
2

Answer:

When goods are withdrawn by the proprietor, goods are going out of the business i.e., purchases account has to credited. The journal entry for this is -

Drawings A/c Dr 10000

To Purchases A/c 10000

Instead of this entry, the incorrect entry passed was -

Drawings A/c Dr 10000

To Sales A/c 10000

Here, instead of purchase account sales account has been credited whereas drawings account has been rightly debited , so to cancel this entry and rectify it, sales account which was credited is to be debited to cancel the entry, and purchases account will be credited fro the original entry. Since drawings account is rightly debited, no change will be made regarding drawings account. The rectified journal entry thus becomes -

Sales A/c Dr 10000

To Purchases A/c 10000

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