Question

Give the Journal entries to rectify the following errors:
(i) Purchases Book was overcast by ₹ 1,000.
(ii) Installation charges on new machinery purchased ₹ 500 were debited to Sundry Expenses Account as ₹ 50.
(iii) Radhey Shyam returned goods worth ₹ 500 which was entered in the Purchases Return Book.
(iv) Goods taken by the proprietor for ₹ 5,000 have not been entered in the books at all.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
(i)	Suspense A/c	Dr.		1,000
	To Purchases A/c				1,000
	(Purchases Book was overcast, now rectified)
(ii)	Machinery A/c	Dr.		500
	To Sundry Expense A/c				50
	To Suspense A/c				450
	(Installation charges of Machinery Rs 1,500 was wrongly debited as Rs 50 in Sundry Expenses Account, now rectified)
(iii)	Sales Return A/c	Dr.		500
	Purchases Return A/c	Dr.		500
	To Radhey Shyam				1,000
	(Goods returned by Radhey Shyam was wrongly entered in Purchases Return Book, now rectified)
(iv)	Drawings A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Goods taken by proprietor was not recorded, now rectified)