Question 14.
Correct the following errors in Mohan Lal’s Book:
(i) A payment of ₹ 5,000 for salaries (to Mr. Ram) has been posted twice to the Salaries Account.
(ii) ₹ 750 received from Rajesh are entered on the debit side of the Cash Book. No posting was done in Rajesh’s Account.
(iii) Sales Book was overcast by ₹ 3,000.
(iv) Goods (Cost ₹ 2,000, Sales Price ₹ 2,500) distributed as free simples among prospective customers were not recorded anywhere.
Answers
The journal entries in the book of Mohan Lal are shown below:
Explanation:
The journal entries in the book of Mohan Lal are as:
1.
Suspense A/c............................Dr Rs 5,000
To Salaries A/c.......................Cr Rs 5,000
Being payment made twice, is now rectified.
2.
Suspense A/c.................................Dr Rs 750
To Rajesh A/c...........................Cr Rs 750
Being posting is not done in the account of Rajesh, is now rectified.
3.
Sales A/c.....................................Dr Rs 3,000
To Suspense A/c......................Cr Rs 3,000
Being sales book overstated, is now rectified.
4.
Advertisement A/c........................Dr Rs 2,000
To Purchases A/c..........................Cr Rs 2,000
Being goods which are distributed, not recorded, now rectified.
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