Question

Rectify the following errors which were detected before preparing the Trial Balance:
(i) Purchase book has been overcast by ₹ 1,000.
(ii) Purchase from Ram ₹ 20,000 has been omitted to be posted to his account.
(iii) Purchase from Shyam ₹ 15,000 has been posted to the debit side of his account.
(iv) Purchase from Ghanshyam ₹ 10,000 has been posted to his account as ₹ 1,000.
(v) Purchase from Sita Ram ₹ 5,000 has been posted to his account as ₹ 50,000.

Answer 1

One Sided Errors

1. Purchases Book has been overcasted by Rs 1,000. Since it is an error of casting that means individual creditors accounts have been posted correctly and only the total of purchases book has been posted incorrectly to the debit side of Purchases Account. Thus, Purchases Account will be rectified by recording Rs 1,000 on the credit side of Purchases Account.

Purchases Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
						Overcasting of Purchases book		1,000

2. Purchases from Ram Rs 20,000 has been omitted to be posted to his account. This mistake is happened only in Ram’s Account which means that the total of Purchases Book is correct. Thus, in order to rectify this error Rs 20,000 should be posted on the credit side of Ram’s Account.

Ram’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
						Omission in posting		20,000

3. Purchase from Shyam Rs 15,000 has been posted to the debit side of his account. It implies that there is no mistake in Purchases account, however, Shyam’s account has been wrongly debited with Rs 15,000 instead of crediting. Thus, rectification will be done by posting the double amount (Rs 30,000) on the credit side of Shyam’s Account.

Shyam’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
						Error in posting to the wrong side		30,000

4. Purchases made from Ghanshayam Rs 10,000 have been posted to his account as Rs 1,000. It is a mistake at the time of posting in the ledger account which implies that there is no mistake in the Purchases Account. In this case, Ghanshyam’s Account was credited with lesser amount. So, Rs 9,000 more will be credited to his account for rectification of this error.

Ghanshyam’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
						Less amount on the credit side		9,000

5. Purchases made from Sitaram Rs 5,000 have been posted to his account as Rs 50,000. It implies that his account is credited with an excess amount of Rs 45,000 (50,000 – 5,000). Thus, in order to rectify this error Rs 45,000 is debited to Sitaram’s Account.

Sitaram’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
		Excess amount on the credit side		45,000