Question

Give journal entries to rectify the following:

(i) A purchase of goods from Varun amounting to Rs. 300 has been wrongly entered through the sales book.

(ii) On 31st December, goods of the value of Rs. 600 were returned by X and were taken into stock on the same date but no entry was passed in the books.

(iii) An amount of Rs. 400 due from Y which had been written-off as a bad debt in a previous year, was unexpectedly recovered, and had been posted to the personal account of Y.

(iv) A cheque for Rs. 200 received from Z was dishonoured and had been posted to the debit of sales retuns account.

(v) Depreciation provided on machinery Rs. 4,000 was posted as Rs. 400.

(vi) Bad debts written-off Rs. 5,000 were posted as Rs. 6,000. (vii) Discount allowed to a debtor Rs. 100 on receiving cash from him was posted as Rs. 60.

(viii) Goods withdrawn by proprietor for personal use Rs. 3,000,not recorded.

(ix) Bills receivable for Rs. 2,000 received from a debtor was posted as Rs. 3,000.

Answer 1

$\begin{array}{c}\text{Rectification Entries in Journal}\end{array}$

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{LF}& \text{Amt (Dr)}& \text{Amt (Cr)}\\ \text{(i)}& \text{Purchases A/c}\text{Dr}& & \text{300}& \\ & \text{Sales A/c}\text{Dr}& & \text{300}& \\ & \text{To Varun's A/c}& & & \text{600}\\ & \text{(Correction of wrong entry in}& & & \\ & \text{the sales book for a purchases of}& & & \\ & \underset{–}{\text{goods from Varun)}}& & & \\ \text{(ii)}& \text{Returns Inwards A/c}\text{Dr}& & \text{600}& \\ & \text{To X's A/c}& & & \text{600}\\ & \text{(Entry of goods returned by}& & & \\ & \text{him and taken in stock omitted}& & & \\ & \underset{–}{\text{from records)}}& & & \\ \text{(iii)}& \text{Y's A/c}\text{Dr}& & \text{400}& \\ & \text{To Bad Debts Recovered A/c}& & & \text{400}\\ & \text{(Correction of wrong credit to}& & & \\ & \text{personal account in respect of}& & & \\ & \underset{–}{\text{recovery of previously written-off bad debts)}}& & & \\ \text{(iv)}& \text{Z's A/c}\text{Dr}& & \text{200}& \\ & \text{To Sales Return A/c}& & & \text{200}\\ & \text{(Correction of wrong debit to sales}& & & \\ & \text{return account for dishonour of cheque}& & & \\ & \underset{–}{\text{received from Z).}}& & & \\ \text{(v)}& \text{Depreciation A/c}\text{Dr}& & \text{3,600}& \\ & \text{To Machinery A/c}& & & \text{3,600}\\ & \text{(Depreciation charged on machinery}& & & \\ & \text{Rs. 4,000. wrongly posted as Rs. 400,}& & & \\ & \underset{–}{\text{now rectified)}}& & & \\ \text{(vi)}& \text{Debtor's A/c}\text{Dr}& & \text{1,000}& \\ & \text{To Bad Debts A/c}& & & \text{1,000}\\ & \text{(Bad debts of Rs. 5,000 wrongly}& & & \\ & \underset{–}{\text{charged as Rs. 6,000, now rectified)}}& & & \\ \text{(vii)}& \text{Discount Allowed A/c}\text{Dr}& & \text{40}& \\ & \text{To Debtor's A/c}& & & \text{40}\\ & \text{(Discount allowed to debtors Rs. 100.}& & & \\ & \underset{–}{\text{wrongly posted as Rs. 60, now rectified)}}& & & \\ \text{(viii)}& \text{Drawings A/c}\text{Dr}& & \text{3,000}& \\ & \text{To Purchases A/c}& & & \text{3,000}\\ & \text{(Drawings of Rs.3,000 not recorded,}& & & \\ & \underset{–}{\text{now rectified)}}& & & \\ \text{(ix)}& \text{Debtor's A/c}\text{Dr}& & \text{1,000}& \\ & \text{To Bills Receivable A/c}& & & \text{1,000}\\ & \text{(Bills receivable for Rs. 2,000}& & & \\ & \text{received from debtor, wrongly}& & & \\ & \text{posted as Rs. 3,000, now rectified}& & & \end{array}$