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Byju's Answer
Standard XII
Accountancy
Current Ratio
An expense on...
Question

An expense on major repairs of machinery purchased second hand has been debited to repairs account; it involves an error of _________.

A
error of omission
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B
error of commission
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C
error of principle
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D
compensating error
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Solution

The correct option is C error of principle
Heavy expenditure done on an overhaul of second machinery is a capital expenditure as it is going to increase the efficiency of the machinery. It has to be debited to machinery account.
If this has been debited to repairs and maintenance expenses account, its an error of principle.

Rectification entry will be passed as under:

Machinery A/c Dr.
To Repairs & Maintenance A/c

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Q. Rs.5,000 spent on repairing of Second-hand Machinery purchased is transferred to Repairs A/c. It is an error of __________.
Q. Rectify the following errors:
(a) Furniture purchased for ₹ 10,000 wrongly debited to Purchases Account.
(b) Machinery purchased on credit from Raman for ₹ 20,000 was recorded through Purchases Book.
(c) Repairs on machinery ₹ 1,400 debited to Machinery Account.
(d) Repairs on overhauling of second hand machinery purchased ₹ 2,000 was debited to Repairs Account.
(e) Sale of old machinery at book value of ₹ 3,000 was credited to Sales Account.
Q.

Rectify the following errors.

(a) Furniture purchased for Rs. 10,000 wrongly debited to purchase account.

(b) Machinery purchased on credit from Raman for Rs. 20,000 was recorded through purchase book.

(c) Repairs on machinery Rs. 1,400 debited to machinery account.

(d) Repairs on overhauling of second hand machinery purchased Rs. 2,000 was debited to repair account.

(e) Sales of old machinery at book value of Rs. 3,000 was credited to sales account.

Q. Pass the necessary Journal entries to rectify the following errors:
(i) ₹ 15,000 paid as wages for the construction of office building debited to Salaries Account.
(ii) ₹ 20,000 spent on the purchases of material for the construction of building debited to Purchases Account.
(iii) ₹ 50,000 spent on the extension of building was debited to Building Repairs Account.
(iv) ₹ 25,000 spent on whitewash of a new building was charged to Building Repairs Account.
(v) ₹ 1,000 paid as installation charges for newly purchased second hand machinery posted to Cartage Account.
(vi) ₹ 10,000 paid as repairing charges on the reconditioning of a newly purchased second hand machinery debited to General Expenses Account.
(vii) ₹ 5,000 paid as repairing charges of an existing machine in use charged to Machinery Account.
(viii) ₹ 10,000 paid by cheque for a printer was charged to the Office Expense Account.
Q.

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.

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