Question

Pass necessary journal entries to rectify the following errors : 2) rent of proprietors residence of Rs.12000 was posted to rent account

Answer 1

wrong entry :- rent a/c. dr. 12000
to cash a/c. 12000


correct entry:- drawings a/c. dr. 12000
to cash/ purchase a/c. 12000


rectification entry:- drawings a/c. dr. 12000
to rent a/c. 12000

Answer 2

The rectifying entry that should be passed should be:

Drawings a/c Dr. $12,000$

To Rent a/c                      $12,000$

• The wrong entry that was passed in the first place was:

Rent a/c Dr.$12,000$

To Cash a/c               $12,000$

( Being Rent paid)

• This was actually to be debited to the Drawing's a/c as this entry was the personal expense of the owner.
• When we pass the above entry it is assumed that the rent paid was an office expense which was not correct.
• So the correct entry that should have been passed instead of this should have been:

Drawings a/c Dr.$12,000$

To Cash a/c                         $12,000$

(Being the cash withdrawn from the business for paying the owner's residence rent.

• So the rectifying entry to correct the wrong entry will be :

Drawings a/c Dr. $12,000$

To Rent a/c                         $12,000$

( Being the wrong entry earlier passed rectified)

• By passing the above entry the previous wrong debit of the rent will get a corresponding credit entry of the same amount and so the amount will be tallied.

• Therefore, the rectifying entry passed will be:

Drawings a/c Dr.$12,000$

To Rent a/c                       $12,000$

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