Question

Question 41.
Rectify the following errors:
(i) Sale of old furniture worth ₹ 3,000 treated as sales of goods.
(ii) Sales Book added ₹ 5,000 short.
(iii) Rent of proprietor’s residence, ₹ 6,500 debited to Rent Account.
(iv) Goods worth ₹ 11,970 returned by Manav posted to his debit as ₹ 11,790.

Answer 1

Explanation to all the entries are given.

Explanation:

(i) Sales A/c Dr. 3000

    To Furniture A/c 3000

Here sales account is debited as it was wrongly treated and was credited. Furniture is credited as it was sold and needs to be credited.

(ii) Suspense A/c Dr.5000

     To Sales A/c          5000

Sales is short fall so it is credited to increase it to the actual and suspense account is to be debited.

(iii) Drawings A/c Dr.6500

       To Rent A/c          6500

When proprietor takes money from business it is treated as drawings so here drawing account is debited as it is paid for personal rent of proprietor and rent account is credited as it was wrongly debited.

(iv) Suspense A/c Dr. 23940

       To Manav A/c        23940

Manav account is credited with double amount as it was wrongly debited before so it is credited and suspense account is debited with the same amount.