Give journal entries (with narrations) to rectify the following errors located in the books of a Trader after preparing the Trial Balance: (i) An…

CA Foundation · Accounting · MTP · June 2024
Give journal entries (with narrations) to rectify the following errors located in the books of a Trader after preparing the Trial Balance: (i) An amount of 4,500 received on account of Interest was credited to Commission account. (ii) A sale of 2,760 was posted from Sales Book to the Debit of M/s Sobhag Traders at 2,670 (iii) ₹ 35,000 paid for purchase of Air conditioner for the personal use of proprietor debited to Machinery A/c. (iv) Goods returned by customer for 5,000. The same have been taken into stock but no entry passed in the books of accounts.

Suggested Answer and Working Notes:

S. No. Particulars Debit (₹) Credit (₹) 1 Commission A/c Dr. To Interest Received (Correcting wrong entry of interest received into commission account) 4,500 4,500 2 M/s Sobhag Traders A/c Dr. To Suspense A/c (Being credit sale of 2,760 posted as 2,670 i.e. debiting M/s Sobhag Traders A/c less by - 90, now rectified) 90 90 3 Drawing A/c Dr. To Machinery A/c (Correction of wrong debit to machinery account for purchase of air-conditioner for personal use) 35,000 35,000 4 Return Inward A/c Dr. To Debtors (Personal) A/c (Correction of omission to record return of goods by customers) 5,000 5,000

Topics: Depreciation and Amortisation

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