The following errors were discovered in the books of Mr. Krishna: (i) Minor repairs to office premises amounting to ₹ 3,200 plus CGST and SGST @ 9%…

CA Foundation · Accounting · RTP · September 2026
The following errors were discovered in the books of Mr. Krishna: (i) Minor repairs to office premises amounting to ₹ 3,200 plus CGST and SGST @ 9% each were debited to Building Account. (ii) An amount of ₹ 8,500 due from Mohit Verma, which had been written off as bad debts in the previous year, was recovered during the current year and wrongly credited to Mohit Verma's Personal Account. (iii) Office furniture purchased for ₹ 35,000 plus CGST and SGST @ 9% each was entered in the Purchases Day Book. (iv) Goods purchased on credit from Rakesh Enterprises amounting to ₹ 24,000 plus IGST @ 12% have remained completely unrecorded. (v) School fees of proprietor's daughter amounting to ₹ 28,000 were debited to Legal Charges Account. (vi) A cheque received from Ankit Sharma ₹ 12,600 was credited to the account of Amit Sharma. (vii) Goods costing ₹ 15,000 sold to a customer were returned by him. The goods were received back into inventory, but no entry was passed in the books. CGST and SGST @ 9% each was charged on the original cost. (viii) Wages of ₹ 5,000 paid to workers engaged in manufacturing office furniture were debited to Wages Account. (ix) Salary paid to office manager ₹ 18,000 was debited to his Personal Account. (x) Cash paid to creditor Naveen Kumar ₹ 9,800 was correctly entered in the Cash Book but omitted from his Personal Account. Pass the necessary Journal Entries to rectify the above errors.

Suggested Answer and Working Notes:

In the books of Mr. Krishna Journal Entries Date Particulars Dr. (₹) Cr. (₹) (1) Repairs A/c 3,200 Input CGST A/c 288 Input SGST A/c 288 To Building A/c 3,776 (Being repairs to building wrongly debited to building now rectified) (2) Mohit Verma A/c 8,500 To Bad Debts Recovered A/c 8,500 (Recovery of bad debts wrongly credited to debtor now rectified) (3) Furniture A/c 35,000 Input CGST A/c 3,150 Input SGST A/c 3,150 To Purchases A/c 41,300 (Furniture purchase wrongly treated as goods purchaser, now rectified) (4) Purchases A/c 24,000 Input ICGST A/c 2,880 To Rakesh Enterprises A/c 26,880 (Goods purchased from Rakesh enterprises omitted to be recorded now rectified) (5) Drawings A/c 28,000 To Legal Charges A/c 28,000 (Proprietor's daughter's school fees wrongly debited to expenses, now rectified) (6) Amit Sharma A/c 12,600 To Ankit Sharma A/c 12,600 (Cheque received from Ankit sharma wrongly creditred to Amit Sharma, now rectified) (7) Sales Return A/c 15,000 Output CGST A/c 1,350 Output SGST A/c 1,350 To Customer's A/c 17,700 (Sales return omitted to be recorded now rectified) (8) Furniture A/c 5,000 To Wages A/c 5,000 (Furniture-making wages capitalised now rectified) (9) Salaries A/c 18,000 To Office Manager's Personal A/c 18,000 (Salary paid to personal manager wrongly debited to personal account now rectified) (X) Naveen Kumar A/c 9,800 To Suspense A/c 9,800 (Omission of posting in creditor's account now rectified)

Topics: Rectification of Errors

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