Rectify the following Errors: i) Purchases from Akila for Rs. 1,500 has been posted to the debit side of her account. ii) Sales to Sowndarya for Rs. 1,520 has been posted to his credited as Rs.1,250 iii) Purchases from Aishu Rs. 750 has been omitted to be; posted to the personal account. iv) Sales to Kalai for Rs.780 has been posted to his account as Rs.870.
Answers
Answer:
Correct the following errors found in the books of Mr. Dhandapani. The Trial Balance was out
by Rs.986, excess credit. The difference has been posted to a suspense account.
a. A sale of Rs.400 to Bobby & co., was wrongly credited to their account.
b. A purchase of Rs.134 had been posted to the creditor’s account as Rs.120
c. The total of returns inward book for December had been cast Rs.200 short
d. A cheque for Rs.400 received from Sandhya had been dishonoured and was posted to the debit
of “Allowance account”.
Solution:
In the Books of Dhandapani
Rectifying Journal Entries
Errors Particulars L.F. Debit
Rs.
Credit
Rs.
a Bobby & Co. A/c Dr.
To Suspense A/c
(Being the correction of the mistake by which the account of
Bobby & Co. was credited by Rs. 400 instead of being
debited)
800
800
b Suspense A/c Dr.
To Creditor’s A/c
(Being the mistake in crediting the creditor’s account less by
Rs.14 now corrected)
14
14
c Return Inward A/c Dr.
To Suspense A/c
(Being the mistake of totalling the Return Inward Book
corrected)
200
200
d Sandhya A/c Dr.
To Allowances A/c
(Being the cheque of Sandhya dishonoured previously debited
to Allowances A/c)
400
400
Suspense Account
31
Dec
To Difference in Trial Balance
To Creditors A/c
986
14
31
Dec
By Bobby & Co. A/c
By Return inward A/c
800
200
1000 1000