Before preparation of the Trial Balance, the following errors were found in the books of Acer Associates . Give the necessary entries to correct…

CA Foundation · Accounting · MTP · January 2026
Before preparation of the Trial Balance, the following errors were found in the books of Acer Associates . Give the necessary entries to correct them. (i) Minor Repairs made to the building amounting to 1,850 were debited to the Building Account. (ii) An amount of 3,000 due from Vijay , which had been written off as bad debts in the previous year, recovered in the current year, and had been posted to the personal Account of Vijay. (iii) Furniture purchased for office use amounting to 20,000 has been entered in the purchase day book. (iv) Goods purchased from Virat amounting to 8,000 have remained unrecorded so far. (v) College fees of proprietor's son, 7,000 debited to the Audit fees Account. (vi) Receipt of 4,500 from Sheena credited to the Meena. (vii) Goods amounting to 6,200 had been returned by a customer and were taken into inventory, but no entry was made in the books. (viii) 1050paid for wages to workmen for making office furniture had been charged to wages account. (ix) Salary paid to a clerk - 12,000 has been debited to his personal account. (x) A purchase of goods from Ankit amounting to 20,000 has been wrongly entered through the sales book .

Suggested Answer and Working Notes:

In the books of Acer Associates Journal Particulars L.F. Dr. ₹ Cr. ₹ (i) Repairs A/c Dr. 1,850 To Building A/c 1,850 (Correction of wrong debit to building A/c for repairs made) (ii) Vijay A/c Dr. 3,000 To Bad Debts Recovered A/c 3,000 (Correction of wrong credit to Personal A/c in respect of recovery of previously written off bad debts) (iii) Furniture A/c Dr. 20,000 To Purchases A/c 20,000 (Correction of wrong debit to Purchases A/c for furniture purchased) (iv) Purchases A/c Dr. 8,000 To Virat A/c 8,000 (Purchases of goods from Virat remained unrecorded) (v) Drawings A/c Dr. 7,000 To Audit Fees A/c 7,000 (Correction of wrong debit to Audit Fees A/c for college fees of proprietor’s son) (vi) Meena A/c Dr. 4,500 To Sheena A/c 4,500 (Correction of wrong credit to Sheena. instead of Meena.) (vii) Returns Inwards / Sales Return A/c Dr. 6,200 To Customer/Debtors A/c 6,200 (Entry of goods returned by customer and taken in inventory omitted from records) (viii) Furniture A/c Dr. 1,050 To Wages A/c 1,050 (Wages paid to workmen for office furniture wrongly charged to wages a/c now rectified) (ix) Salaries A/c Dr. 12,000 To Clerk’s (Personal) A/c 12,000 (Correction of wrong debit to Clerk’s personal A/c for salaries paid) (x) Purchases A/c Dr. 20,000 Sales A/c Dr. 20,000 To Ankit A/c 40,000 (Correction of wrong entry in the sales Book for purchases of goods from Ankit)

Topics: Rectification of Errors

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