Question

The accountant of a firm located the following errors after preparing the trial balance. Rectify them assuming that there is a suspense account.
1.  Machinery purchased for Rs 3,500 was debited to purchases account.
2. Rs. 1,800 paid to Raina as salary was debited to his personal account.
3.  Interest received Rs. 200 was credited to commission account.
4.  Goods worth Rs 1,800 purchased from Amudhanila on credit was not recorded in the books of accounts.
5.  Used furniture sold for Rs.350 was credited to sales account.​

Answer 1

Explanation:

1. Machinery A/c Dr. 3500

To Purchase A/c 3500

(Being the purchase of machinery was debited to Purchase A/c, now rectified)

2. Salary A/c Dr. 1800

To Raina A/c. 1800

(Being the salary was debited to Raina A/c, now rectified)

3. Commission A/c Dr 200

To Interest Received A/c 200

(Being the Commission A/c was credited, now rectified)

4. Purchase A/c Dr 1800

To Amudhanila A/c 1800

(Being the purchase of goods on credit from Amudhanila was not recorded in purchase book, now rectified)

5. Sales A/c Dr. 350

To Old Furniture A/c. 350

(Being the sales of old furniture was credited to Sales A/c, now rectified)