Question 21.
Pass the rectifying entries for the following:
(i) Sales of goods ₹ 6,000 to Madan were recorded as ₹ 600 in the Sales Book.
(ii) Credit purchase of goods from Mohan amounting to ₹ 2,000 has been wrongly passed through the Sales Book.
(iii) Return of goods worth ₹ 500 by a customer was entered in ‘Purchases Return Book’.
(iv) Cheque of ₹ 400 received from Ranjan was dishonoured and debited to the Discount Account.
(v) Bill for ₹ 820 received from Ramesh for repair of machinery was entered in the Purchases Book as ₹ 720.
Answers
hope you will understand the entries
Explanation:
(i)Madan A/c Dr. 5400
To Sales A/c 5400
we need to Debit the madan account by 5400 as we debited it only by 600 instead of 6000. Likewise we will credit sales account by 5400 to rectify the error.
(ii) Sales A/c Dr 2000
Purchase A/c Dr 2000
To Mohan A/c 4000
when we make an entry for sales we would have debited the Mohan account and credited the sales account. So to rectify it we have to debit the sales account , debit the purchase account as it was purchase and credit the Mohan account with the double amount one to null the effect of sale and one of the purchase.
(iii) Sales return A/c Dr 500
Purchase return A/c Dr 500
To Customer A/c 1000
Debited the sales return because the customer returns our goods, debited the purchase return because we would have wrongly credited the purchase return and credited the customer account by double amount , one to null the effect of error entry and one to rectify it .
(iv) Ranjan A/c Dr 400
To discount A/c 400
We debited the ranjan account because the dishonoured cheque was given by ranjan. Discount account is credited because it was wrongly debited.
(v) Repairs A/c Dr 820
To purchase A/c 720
To Suspense A/c 100
Repairs account is debited because it was our expense and need to be debited. Purchase is credited because it was wrongly debited. we have to open a suspense account because it is not known about the 100 rs where we have transferred it.
Answer:
you are correct...
