Question

Rectify the following errors :
(i) Credit sales to Mohan Rs. 7,000 were recorded as Rs.7,200.
(ii) Credit purchases from Rohan Rs. 9,000 were recorded as Rs. 9,900.
(iii) Goods returned to Rakesh Rs. 4,000 were recorded as Rs 4,040.
(iv) Goods returned from Mahesh Rs. 1,000 were recorded as Rs.1,600.

Answer 1

The answer is stated below:

Explanation:

The journal entry for the followings to rectify are as follows:

1.  Sales A/c............................Dr     $200

         Mohan A/c.........................Cr    $200

Being credit sales were understated

2. Rohan A/c........................Dr     $900

     Purchases A/c.......................Cr   $900

Being credit purchases were overstated

3. Purchase return A/c.........................Dr    $40

               Rakesh A/c.......................................Cr   $40

Being purchase return was understated

4. Mahesh A/c....................................Dr     $600

          Sales return A/c...........................Cr    $600

Being sales return were overstated

• The followings entry are to be posted in order to rectify the errors and the difference amount will be posted.