Rectify the following errors assuming that suspension account was opened.
Ascertain the difference in trial balance.
(a) Furniture purchased for Rs. 10,000 wrongly debited to purchase
account as Rs. 4,000.
(b) Machinery purchased on credit from Raman for Rs. 20,000 recorded
through Purchases Book as Rs. 6,000.
(c) Repairs on machinery Rs. 1,400 debited to Machinery account as
Rs. 2,400.
(d) Repairs on overhauling of second hand machinery purchased Rs. 2,000
was debited to Repairs account as Rs. 200.
(e) Sale of old machinery at book value Rs. 3,000 was credited to sales
account as Rs. 5,000.
Answers
Answer:
Purachase a/c dr to cash
The journal entries are shown below:
Explanation:
a.
Depreciation A/c.....................Dr Rs 4,000
To Furniture A/c.......................Cr Rs 4,000
Being the entry is rectified
b.
Bad debts A/c.....................Dr Rs 14,000
To Debtors A/c.......................Cr Rs 14,000
Being the entry is rectified
c.
Discount allowed A/c.....................Dr Rs 1,000
To Debtors A/c................................Cr Rs1,000
Being the entry is rectified
d.
Discount allowed A/c.....................Dr Rs 1,800
To Suspense A/c................................Cr Rs1,800
Being the entry is rectified
e.
Bills Receivable A/c.....................Dr Rs2,000
To Debtors A/c................................Cr Rs2,000
Being the entry is rectified