Question

Rectify the following errors found in the books of Mr. Aryan by passing entries:
(i) The purchase of ₹ 610 from Kabir was entered into sales book but Kabir's personal account was rightly credited.
(ii) Sale of old furniture of ₹ 2,500 was credited to sales account as ₹ 250.
(iii) An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the previous year's books.
(iv) ₹ 220 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Answer 1

Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
(i)	Sales A/c	Dr.		610
	Purchases A/c	Dr.		610
	To Suspense A/c				1,220
	(purchases from Kabir wrongly entered in sales book)
(ii)	Sales A/c	Dr.		250
	Suspense A/c	Dr.		2,250
	To Furniture A/c				2,500
	(sale of old furniture wrongly credited to sales A/c)
(iii)	Prepaid insurance A/c	Dr.		500
	To Suspense A/c				500
	(prepaid insurance omitted to be brought forward)
(iv)	Suspense A/c			220
	To Discount received A/c				220
	(discount received omitted to be recorded)