Question

Rectify the following errors by passing Journal entries:
(i) A sum of ₹ 470 received from Ganga was posted to her debit as ₹ 740.
(ii) A debit balance of ₹ 550 in the personal account of Mr. John was undercast.
(iii) Bills Receivable from Brown for ₹ 3,000 posted to the credit of Bills Payable Account and credited to Brown’s Account.
(iv) Goods returned by Mridul ₹ 225 have been entered in the Returns Outward Book.

Answer 1

Journal
Date	Particulars			L.F.	Debit Amount (Rs)	Credit Amount (Rs)
(i)	Suspense A/c (740+ 470)		Dr.		1,210
		To Ganga’s A/c				1,210
	(Rs 470 received from Ganga was posted to her debit as Rs 740, now rectified)
(ii)	Mr. John’s A/c		Dr.		550
		To Suspense A/c				550
	(Debit balance of Mr. John’s personal account was undercasted by Rs 550, now rectified)
(iii)	Bills Receivable A/c		Dr.		3,000
	Bills Payable A/c		Dr.		3,000
		To Suspense A/c				6,000
	(Bills Receivable from Brown, posted to credit of bills payable and credited to Brown’s Account, now rectified)
(iv)	Sales Return A/c		Dr.		225
	Purchases Return A/c				225
		To Mridul’s A/c				450
	(Goods returned by Mridul was entered in the Return Outward book, now rectified)