Pass the Journal entries to rectify the following errors detected during preparation of the Trial Balance: (i) An amount of ₹ 14,000 due from Ramesh…

CA Foundation · Accounting · MTP · September 2026
Pass the Journal entries to rectify the following errors detected during preparation of the Trial Balance: (i) An amount of ₹ 14,000 due from Ramesh which had been written off as a bad debt in the previous year was unexpectedly recovered and has been posted to the personal account of Ramesh. (ii) A credit sale of goods ₹ 5,200 to Vimal has been wrongly passed through the Purchase Book. (iii) Goods (Cost being ₹ 25,000 and Sales price being ₹ 26,000) distributed as free samples among prospective customers were not recorded anywhere. (iv) Goods worth ₹ 1,500 returned by Green have not been recorded anywhere.

Suggested Answer and Working Notes:

Journal Particulars L.F. Dr. ₹ Cr. ₹ (1) Ramesh Dr. 14,000 To Bad Debts Recovered A/c 14,000 (Correction of wrong credit to Personal A/c in respect of recovery of previously written off bad debts) (2) Vimal Dr. 10,400 To Purchases A/c 5,200 To Sales A/c 5,200 (Correction of wrong entry in the Purchases Book of a credit sale of goods to Vimal) (3) Advertisement expenses or Sales Promotion or Free Samples A/c Dr. 25,000 To Purchases A/c 25,000 (Entry of the goods distributed as free samples omitted from records) (4) Returns Inwards /Sales Return A/c Dr. 1,500 To Green 1,500 (Entry of goods returned by Green omitted from records)

Topics: Rectification of Errors

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