Question 45.
Rectify the following errors by passing Journal entries:
(i) Old furniture sold for ₹ 500 has been credited to Sales Account.
(ii) Machinery purchased on credit from Raman for ₹ 2,000 recorded through Purchases Book as ₹ 16,000.
(iii) Cash received from Rajat ₹ 5,000 was posted to the debit of Bhagat as ₹ 6,000.
(iv) Depreciation provided on machinery ₹ 3,000 was posted to Machinery Account as ₹ 300.
Answers
An explanation is given to each entry that will help you to understand it more.
Explanation:
(i) Sales A/c Dr. 500
To Furniture A/c 500
Sales account is debited as it was wrongly credited. Furniture account is credited as it was the sale of the furniture.
(ii) Machinery A/c Dr. 2000
Raman A/c Dr. 14000
To Purchase A/c 16000
Machinery account is debited as it was purchase of machinery. Raman account is debited with 14000 as we must have credited it wrongly with 16000 when we treated it as purchase so it will automatically get credit with 2000. Purchase account is credited as it was debited before.
(iii) Suspense A/c Dr. 11000
To Rajat A/c 5000
To Bhagat A/c 6000
Bhagat account is credited because it was debited wrongly. Rajat account is credited as we received the money from him. Suspense account is required to be open here as we do not have the complete information.
(iv) Suspense A/c Dr. 2700
To Machinery A/c 2700
We credited the machinery account with the balance of amount left. Suspense account is required to be open here .
Answer:
Rectify the following errors by passing Journal entries:
(i) Old furniture sold for ₹ 500 has been credited to Sales Account.
(ii) Machinery purchased on credit from Raman for ₹ 2,000 recorded through Purchases Book as ₹ 16,000.
(iii) Cash received from Rajat ₹ 5,000 was posted to the debit of Bhagat as ₹ 6,000.
(iv) Depreciation provided on machinery ₹ 3,000 was posted to Machinery Account as ₹ 300.
