Rectify the following errors:
i. Rs.2,000 paid for furniture purchased has been debited to purchases
account.
ii. Rs.1,000 received from X has been credited to Y’s account.
iii. A credit sale to D Rs. 2,800 posted as Rs. 8,200.
iv. Credit sales to Mohan Rs.7,000 were posted to Karan as Rs.5,000.
v. Goods costing Rs.2,000 taken by proprietor were not recorded anywhere.
vi. A purchase of goods from Ravi amounting to Rs.1,500 has been wrongly
passed through the sales book
Answers
Answer:
It is essential to identify and rectify errors promptly to prevent further complications and to ensure that the financial statements provide a true and fair view of the company's financial position and performance. Corrections should be made by following the correct accounting principles and guidelines and by making appropriate journal entries to correct the errors.
Explanation:
The following are corrections that we have made in order to rectify errors:
i. Rs.2,000 paid for furniture purchased should be debited to Furniture Account or Fixed Assets Account, not to Purchases Account.
ii. Rs.1,000 received from X should be credited to X’s account, not to Y’s account.
iii. The entry for the credit sale to D should be corrected by debiting Accounts Receivable or D’s account by Rs.2,800 and crediting Sales Account by Rs.2,800. The incorrect posting of Rs. 8,200 should be reversed by debiting Sales Account by Rs.5,400 and crediting Accounts Receivable or D’s account by Rs.5,400.
iv.The entry for the credit sales to Mohan should be corrected by debiting Accounts Receivable or Mohan’s account by Rs.7,000 and crediting Sales Account by Rs.7,000. The incorrect posting of Rs.5,000 to Karan should be reversed by debiting Accounts Receivable or Karan’s account by Rs.5,000 and crediting Sales Account by Rs.5,000.
v. The entry for the goods costing Rs.2,000 taken by proprietor should be recorded by debiting Drawings Account by Rs.2,000 and crediting Inventory or Stock Account by Rs.2,000.
vi. The entry for the purchase of goods from Ravi amounting to Rs.1,500 should be corrected by debiting Purchases Account or Inventory Account by Rs.1,500 and crediting Ravi’s Account or Accounts Payable Account by Rs.1,500. The incorrect posting to Sales Book should be reversed by debiting Sales Account by Rs.1,500 and crediting Purchases Account or Inventory Account by Rs.1,500.
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Answer:
The following are corrections that we've got made if you want to rectify mistakes:
Explanation:
i. Rs.2,000 paid for fixtures bought should be debited to furnishings Account or fixed belongings Account, no longer to Purchases Account.
ii. Rs.1,000 acquired from X ought to be credited to X’s account, now not to Y’s account.
iii. The access for the credit score sale to D must be corrected with the aid of debiting debts Receivable or D’s account by Rs.2,800 and crediting sales Account through Rs.2,800. the incorrect posting of Rs. 8,200 should be reversed by using debiting income Account through Rs.five,400 and crediting bills Receivable or D’s account via Rs.five,four hundred.
iv.The access for the credit income to Mohan have to be corrected through debiting accounts Receivable or Mohan’s account by means of Rs.7,000 and crediting sales Account by using Rs.7,000. the incorrect posting of Rs.five,000 to Karan need to be reversed through debiting money owed Receivable or Karan’s account by way of Rs.5,000 and crediting income Account by way of Rs.five,000.
v. The access for the goods costing Rs.2,000 taken by owner ought to be recorded through debiting Drawings Account by using Rs.2,000 and crediting inventory or stock Account by using Rs.2,000.
vi. The entry for the acquisition of goods from Ravi amounting to Rs.1,500 ought to be corrected through debiting Purchases Account or stock Account with the aid of Rs.1,500 and crediting Ravi’s Account or accounts Payable Account with the aid of Rs.1,500. the incorrect posting to sales e-book have to be reversed by debiting income Account by means of Rs.1,500 and crediting Purchases Account or stock Account by means of Rs.1,500.
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