Question

Question 10.
Following errors affecting the accounts of the year 2016-17 were detected in the books of Das & Co., Meerut:
(i) Sale of old furniture for ₹ 5,000 was treated as sales of goods.
(ii) Rent of proprietor’s residence ₹ 6,000 was debited to Rent Account.
(iii) Cash received from Rajesh ₹ 2,150 was credited to Brajesh.
Pass the rectifying Journal entries. State the nature of each of these mistakes.

Answer 1

Answer:

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Answer 2

The correct journal entries are -

1) Sales A/c  Dr.  5000

To furniture A/c 5000

(Being the sale of old furniture treated as sale of goods, now rectified)

Nature of error : Error of Principle

2) Drawings A/c Dr. 6000

To Rent A/c  6000

( Being rent paid for proprietor’s residence treated as rent paid, now rectified)

Nature of error : Error of Principle

3) Brajesh A/c Dr   2150

To Rajesh A/c 2150

(Being cash received from Rajesh, credited to Brajesh, now rectified)

Nature of error: Error of Commission