Question

Trial balance of Radhika did not agree. Radhika put the difference to suspense account. subsequently she located the following errors.

1) Furniture purchased for Rs 6,000 was posted to purchases account as Rs 600.
2) Repairs to Machinerry Rs 500 were debited to Machinery account.
3) Wages paid for installation of Machinery Rs 750 was posted to wages account.
4) Purchased material Rs 8,000 and wages Rs 2,000 were used for construction of building not recorded in the books.
5) Total of sales returns book Rs 2,000 was not posted to the ledger.
6) Old Furniture sold to Dinesh at its book value of Rs 2,500 was recorded through sales book.

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
1	Furniture A/c	Dr.		6,000
	To Purchase A/c				600
	To Suspense A/c				5,400
	(Furniture purchased posted to purchases account, now rectified)
2	Repairs A/c	Dr.		500
	To Machinery A/c				500
	(Repairs debited to Machinery Account, now rectified)
3	Machinery A/c	Dr.		750
	To Wages A/c				750
	(Wages paid for installation of machinery debited to Wages Account, now rectified)
4	Building A/c	Dr.		10,000
	To Cash A/c				10,000
	(Material purchased and wages paid for construction of building were not recorded, now recorded)
5	Sales Returns A/c	Dr.		2,000
	To Suspense A/c				2,000
	(Sales returns Account was not recorded, now rectified)
6	Sales A/c	Dr.		2,500
	To Furniture A/c				2,500
	(Furniture sold recorded through Sales Book, now rectified)