Question

Pass journal entries to rectify the following errors detected during preparation of Trial Balance:
(i) Purchases book is undercast by ₹ 1,000.
(ii) Wages paid for construction of office debited to wages account ₹ 20,000.
(iii) A credit sale of goods ₹ 1,200 to Ramesh has been wrongly passed through the purchase book.
(iv) Goods purchased for ₹ 5,000 were posted as ₹ 500 to the purchases account.
(v) An amount of ₹ 2,000 due from Mahesh Chand, which had been written off as a bad debt in a previous year was unexpectedly recovered and has been posted to the personal account of Mahesh Chand.
(vi) A credit purchase of ₹ 1,040 from Ramesh was passed in the books as ₹ 1,400.
(vii) Goods (Cost ₹ 5,000; Sales Price ₹ 6,000) distributed as free samples among prospective customers was not recorded anywhere.
(viii) Goods worth ₹ 1,500 returned by Green and Co. have not been recorded anywhere.

Answer 1

One Sided Errors

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
i)	Purchases A/c	Dr.		1,000
	To Suspense A/c				1,000
	(Undercasting of Purchases Book)
ii)	Building A/c	Dr.		20,000
	To Wages A/c				20,000
	(Payment made for construction of building debited to Wages Account)
iii)	Ramesh’s A/c	Dr.		2,400
	To Sales A/c				1,200
	To Purchases A/c				1,200
	(Credit sale recorded as purchases)
iv)	Purchases A/c	Dr.		4,500
	To Suspense A/c				4,500
	(Goods purchased for Rs 5,000 posted as Rs 500)
v)	Mahesh Chand’s A/c	Dr.		2,000
	To Bad Debts Recovered A/c				2,000
	(Bad debts recovered posted to the personal account of Mahesh Chand)
vi)	Ramesh’s A/c	Dr.		360
	To Purchases A/c				360
	(Purchases from Ramesh recorded as Rs 1,400 instead of Rs 1,040)
vii)	Advertisement Expenses A/c	Dr.		5,000
	To Purchases A/c				5,000
	(Goods distributed as free samples omitted to be recorded)
viii)	Sales Return A/c	Dr.		1,500
	To Green & Co.				1,500
	(Sales return omitted to be recorded)