Question

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

Answer 1

Rectification Entries in Journal
$$\begin{array}{ccccc}\text{Date}& \text{Particular}& \text{LF}& \text{Amt. (Dr)}& \text{Amt.(Cr)}\\ \left(i\right)& \text{Purchases A/c}\text{Dr}& & 1,000& \\ & \text{To Suspense A/c}& & & 1,000\\ & \text{(Purchases book undercast, rectified)}& & & \\ & \underset{–}{}& & & \\ \left(ii\right)& \text{Building A/c}\text{Dr}& & 20,000& \\ & \text{To Wages A/c}& & & 20,000\\ & \text{(Wages for construction of building )}& & & \\ & \underset{–}{}& & & \\ \left(iii\right)& \text{Ramesh's A/c}\text{Dr}& & 2,400& \\ & \text{To Sales A/c}& & & 1,200\\ & \text{To Purchases A/c}& & & 1,200\\ & \text{(Wrong recording of sales in purchase book)}& & & \\ & \underset{–}{}& & & \\ \left(iv\right)& \text{Purchase A/c}\text{Dr}& & 4,500& \\ & \text{To Suspense A/c}& & & 4,500\\ & \text{(Short posting in purchases account,)}& & & \\ & \underset{–}{}& & & \\ \left(v\right)& \text{Mahesh Chand's A/c}\text{Dr}& & 2,000& \\ & \text{To Bad Debts Recovered A/c}& & & 2,000\\ & \text{(Bad debts recovered wrongly credited to Mahesh's account)}& & & \\ & \underset{–}{}& & & \\ \left(vi\right)& \text{Ramesh's A/c}\text{Dr}& & 360& \\ & \text{To Purchasees A/c}& & & 360\\ & \text{(Excess purchase recorded, now rectified)}& & & \\ & \underset{–}{}& & & \\ \left(vii\right)& \text{Advertisement A/c}\text{Dr}& & 5,000& \\ & \text{To Purchases A/c}& & & 5,000\\ & \text{(Distribution of sample goods recorded)}& & & \\ & \underset{–}{}& & & \\ \left(viii\right)& \text{Sales Return A/c}\text{Dr}& & 1,500& \\ & \text{To Green and Co.}& & & 1,500\\ & \text{(Sales return recorded)}& & & \end{array}$$