Question

Furniture purchased from M/s Rao Furnishing for Rs 8,000 was entered into the Purchase book.
State the wrong entry recorded in the book of accounts
Correct effect should have been
The rectification entry will be

Answer 1

Furniture purchased from M/s Rao Furnishing for Rs 8,000 was entered into the Purchase book.
This is an error of Principle.
State the wrong entry recorded in the book of accounts.

Purchase A/c Dr	8,000
To Rao		8,000

Correct effect should have been

Furniture A/c Dr	8,000
To Rao		8,000

The rectification entry will be

Furniture A/c Dr	8,000
To Purchase A/c		8,000