Question

Following errors affecting the accounts of the year 2016–17 were detected in the books of Das & Co., Meerut:
(i) Sale of old furniture for ₹ 5,000 was treated as sales of goods.
(ii) Rent of proprietor’s residence ₹ 6,000 was debited to Rent Account.
(iii) Cash received from Rajesh ₹ 2,150 was credited to Brajesh.
Pass the rectifying Journal entries. State the nature of each of these mistakes.

Answer 1

Journal
Date	Particulars			L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Sales A/c		Dr.		5,000
		To Furniture A/c				5,000
	(Sale of old furniture treated as sale of goods, now rectified)
	Nature: Error of Principle
(ii)	Drawings A/c		Dr.		6,000
		To Rent A/c				6,000
	(Rent paid for proprietor’s residence treated as rent paid, now rectified)
	Nature: Error of Principle
(iii)	Brajesh’s A/c		Dr.		2,150
		To Rajesh’s A/c				2,150
	(Cash received from Rajesh, credited to Brajesh, now rectified)
	Nature: Error of Commission