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

CA Foundation · Accounting · PYQS · September 2025
Pass the Journal entries to record/rectify the following transactions in the books of Mr. Dutt. Suspense account may be used, if required: (i) Sale of goods to Mahesh at the list price of 1,80,000/- 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. X has agreed to pay his dues of 3,000/- to Mr. C who is a creditor of Mr. Dutt with the same amount being due to him. (iii) Employees have been given inventory having selling price of 1,00,000 (Cost price - 75,000) on the eve of Deepawali as a gift. CGST and SGST applicable is 6% each. (iv) Sale of 2,500/- made to Mr. Kamal Kumar has been debited to Mrs. Kamla Rani. (v) A second hand machinery was purchased 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. (viii) S was also given a credit note of 2,000/- for making prompt payment for outstanding against goods sold to him. CGST and SGST charged on sale was @6%. (ix) An accrual of telephone charges for 2,538 has been completely omitted. (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. Dutt S No. Particulars Dr. (₹) Cr. (₹) i) (a) Mahesh A/c Dr. 1,81,440 To Sales 1,62,000 To Output CGST 9,720 To Output SGST (Being goods sold to Mahesh at 10% trade discount, CGST and SGST is applicable at 6% each.) 9,720 (b) Bank A/c Dr. 60,480 Cash A/c Dr. 30,240 To Mahesh (Being50% of the amount due is received from Mahesh, out of which - 2/3rd is received by cheque and - 1/3rd in cash) 90,720 ii) Mr. C Dr. 3,000 To Mr. X (Being Mr. X paid his dues to Mr. C) 3,000 iii) Misc Expenses A/c /Diwali Gift A/c Dr. 84,000 To Purchases 75,000 To Input CGST 4,500 To Input SGST (Being inventory given to employees as Gift and GST input reversed) 4,500 iv) Kamal Kumar Dr. 2,500 To Kamla Rani (Being sale to Mr. Kamal Kumar has been wrongly debited to Mrs. Kamla Rani now rectified) 2,500 v) Machinery A/c Dr. 13,500 Depreciation A/c Dr. 1,500 To Repairs and Maintenance (Being overhauling charges wrongly debited to repairs and maintenance a/c now rectified) 15,000 vi) Purchase A/c Dr. 136 To X 100 To Suspense (Being purchases of 151from X wrongly posted in purchase book as 15 and posted to Mr. X as 51 now rectified) 36 vii) Rebate A/c Dr. 6,000 Output CGST Dr. 360 Output SGST Dr. 360 To R (Being rebate allowed to R for the goods supplied was found defective) 6,720 viii) Discount allowed A/c Dr. 2,000 To S (Being credit given for making prompt payment for outstanding goods sold) 2,000 ix) Telephone exp. A/c Dr. 2,538 To Outstanding Expenses A/c (Being telephone charges omitted to be recorded now rectified) 2,538 x) Mr. C. Dass A/c Dr. 25,390 To Purchases A/c (Being Cheque issued to Mr. C. Dass wrongly debited to purchases now rectified) 25,390

Topics: Rectification of Errors

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