Pass the Journal entries to record/rectify the following transactions in the books of Mr. Sudeep. Suspense account may be used, if required: (i)…

CA Foundation · Accounting · MTP · May 2026
Pass the Journal entries to record/rectify the following transactions in the books of Mr. Sudeep. Suspense account may be used, if required: (i) Sale of goods to Mahesh at the list price of 45,000/- less 10% trade discount. Out of the amount due50% is received, out of which two- third is received by cheque and the balance amount is received in cash. CGST and SGST applicable is 6% each. (ii) One of the debtors, Mr. Yash has agreed to pay his dues of 3,000/- to Mr. Pritam who is a creditor of Mr. Sudeep with the same amount being due to him. (iii) Cash received from Reema, 8950 was posted to debit of Sheena (iv) Goods worth - 12,000 were sent on sale or return basis to a customer and entered in the Sales Book at the close of the year, the customer still had the option to return the goods. The gross profit margin was 20% on sale. (v) A second hand machinery was purchased at the beginning of the year and its overhauling charges paid are - 15,000/ -. The accountant debited the overhaul charges to Repairs and Maintenance Account. Depreciation on machinery has been charged at 10%. (vi) A purchase of 151from Mr. X was entered in Purchase Day Book as 15 and posted to Mr. X account as 51. (vii) R has been issued a credit note allowing rebate of 6,000/- as goods supplied to him was found defective. CGST and SGST charged @6% each omitted to be recorded. (viii) 1600due from Mr. Akbar was omitted to be taken ·to the trial balance. (ix) Suresh was given a credit note of 12,000/- for making prompt payment for outstanding against goods sold to him. (x) A cheque of 25,390 issued to Mr. C. Dass (shown under trade payables) towards his dues has been wrongly debited to the purchases.

Suggested Answer and Working Notes:

Journal Entries in the books of Mr. Sudeep S No. Particulars Dr. (₹) Cr. (₹) (i) (a) Mahesh A/c Dr. 45,360 To Sales 40,500 To Output CGST 2,430 To Output SGST 2,430 (Being goods sold to Mahesh at 10% trade discount, CGST and SGST is applicable at 6% each.) (b) Bank A/c Dr. 15,120 Cash A/c Dr. 7,560 To Mahesh 22,680 (Being50% of the amount due is received from Mahesh, out of which - 2/3rd is received by cheque and - 1/3rd in cash) (ii) Mr. Pritam Dr. 3,000 To Mr. Yash 3,000 (Being Mr. Yash paid his dues to Mr. Pritam) (iii) Suspense A/c Dr. 17,900 To Reema 8,950 To Sheena 8,950 (Cash received from Reema wrongly debited to Sheena now rectified) (iv) (a) Sales A/c Dr. 12,000 To Customer’s A/c 12,000 (Customer’s A/c credited with goods not yet purchased by him) (b) Goods sent on approval A/c Dr. 9,600 To Trading A/c 9,600 (Goods sent on approval included in the trading A/c at cost price) (v) Machinery A/c Dr. 13,500 Depreciation A/c Dr. 1,500 To Repairs and Maintenance 15,000 (Being overhauling charges wrongly debited to repairs and maintenance a/c now rectified) (vi) Purchase A/c Dr. 136 To X 100 To Suspense A/c 36 (Being purchases of 151from X wrongly posted in purchase book as 15 and posted to Mr. X as 51 now rectified) (vii) Rebate A/c Dr. 6,000 Output CGST Dr. 360 Output SGST Dr. 360 To R 6,720 (Being rebate allowed to R for the goods supplied was found defective) (viii) Akbar’s A/c Dr. 1,600 To Suspense A/c 1,600 (₹ 1,600 due by Akbar not taken into trial balance, now rectified) (ix) Discount allowed A/c Dr. 12,000 To Suresh 12,000 (Being credit note given for making prompt payment for outstanding goods sold) (x) Mr. C. Dass A/c Dr. 25,390 To Purchases A/c 25,390 (Being Cheque issued to Mr. C. Dass wrongly debited to purchases now rectified)

Topics: Rectification of Errors

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