Rectify the following errors:
(a) Payment of wages to Ram Lal was debited to his personal account with
Rs.3000/-
(b) Payment of salaries to srikant Rs. 7000/- was debited to Srikant's account.
(c) Rent amounting to Rs.900/- paid was credited to rent account.
(d) Goods bought from a merchant for Rs.200/- had been posted to the credit of
his account as Rs. 2000/-
(e) Rs.60/- owing by a customer had been omitted from the schedule of debtors.
Answers
Answer:
(a) wages dr 3000
To ram lal 3000
b. salary dr 7000
To srikant 7000
c. rent dr 1800
To suspense a/c 1800
d. merchant dr 1800
To suspense 1800
e. sorry last one idk
Every error is explained to get better understanding.
Explanation:
(a) wages A/c Dr. 3000
To Ram Lal A/c 3000
Wages account is debited as it is our expense and we wrongly debited the wages to personal account of Ram lal. Ram Lal account is required to be credited as we wrongly debited his account.
(b) Salary A/c Dr. 7000
To Srikant A/c 7000
Salary is our expense as we debit the expenses and losses. we wrongly debited the salary to personal account of srikant. Srikant account is credited as it was wrongly debited.
(c) Rent A/c Dr. 1800
To suspense A/c 1800
Rent is our expense which needs to be debited but instead of debiting it we credited it so we debit the rent account with the double amount, one to rectify the error and other to make the entry for rent. Suspense account is opened here as the information is not given about the corresponding account debited against the rent account.
(d) Merchant A/c Dr. 1800
To Suspense A/c 1800
Merchant account is debited with 1800 as it was wrongly credited with 2000 instead of 200. Suspense account is credit because the error is only on one side of the account .
(e) Debtor A/c Dr. 60
To suspense A/c 60
Debtor account is required to be debited as it was omitted.