Question

Correct the following errors in Mohan Lal’s Book:
(i) A payment of ₹ 5,000 for salaries (to Mr. Ram) has been posted twice to the Salaries Account.
(ii) ₹ 750 received from Rajesh are entered on the debit side of the Cash Book. No posting was done in Rajesh’s Account.
(iii) Sales Book was overcast by ₹ 3,000.
(iv) Goods (Cost ₹ 2,000, Sales Price ₹ 2,500) distributed as free simples among prospective customers were not recorded anywhere.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Suspense A/c	Dr.		5,000
	To Salaries A/c				5,000
	(Payment of Salaries Rs 5,000 was posted twice wrongly in Salaries Account, now rectified)
(ii)	Suspense A/c	Dr.		750
	To Rajesh				750
	(Received Rs 750 from Rajesh was omitted to be posted his account, now rectified)
(iii)	Sales A/c	Dr.		3,000
	To Suspense A/c				3,000
	(Sales was overcast, now rectified)
(iv)	Advertisement A/c	Dr.		2,000
	To Purchases A/c				2,000
	(Goods distributed as free sample were not recorded, now recorded)