Question

Rectify the following errors:-

1) Purchase of Building was passed through purchases Book as Rs 65,000.
2) Wages paid for construction of building Rs 15,000 was wrongly debited to wages account.
3) Expense of installation of Machinery was debited to installation charges account Rs 55,000.
4) Brokerage paid Rs 600 for purchase of investment were debited to brokerage account.
5) Old Motor car purchased was debited to repairs account Rs 7,000.
6) Materials purchased for construction of Building was debited to purchases account Rs 9,000.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Building A/c	Dr.		65,000
	To Purchases A/c				65,000
	(Building purchased recorded in the Purchase Book, now rectified)
2	Building A/c	Dr.		15,000
	To Wages A/c				15,000
	(Wages paid for construction of Building was wrongly debited to Wages Account, now rectified)
3	Machinery A/c	Dr.		55,000
	To Installation charges A/c				55,000
	(Installation of machinery debited to Installation Charges Account, now rectified)
4	Investment A/c	Dr.		600
	To Brokerage A/c				600
	(Brokerage paid for purchase of Investment debited to Brokerage Account, now rectified)
5	Motor Car A/c	Dr.		7,000
	To Repairs A/c				7,000
	(Purchase of Motor Car debited to Repairs Account, now rectified)
6	Building A/c	Dr.		9,000
	To Purchases A/c				9,000
	(Material purchased for construction of Building debited to Purchases Account, now rectified)