20,000 recorded through Purchases Book as Rs. Goods returned to Naresh Rs. 9,900. 4,000 were not posted. Credit sales to Mohan Rs. 10,000 were recorded as Rs. 1,500 was posted to Sabu’s account. Goods returned from Mahesh Rs. Goods returned to Rakesh Rs. Goods distributed as free sample Rs. Rectify the following errors and ascertain the amount of difference in trial balance by preparing suspense account : 11. Credit purchases from M & Co. were wrongly recorded (credited) into the sales book as ₹ 2,000 and wrongly credited to M & Co. as ₹ 1,000, the rectification entry would be to, Debit the sales account to rectify the wrongly credited amount of ₹ 2,000. Credit the M & Co. account with the remaining amount (₹ 1,000 is already credited to their account) i.e. Credit the debtor’s account with ₹ 6,000 to rectify the missing entry. 500 were debited to sundry expenses account as Rs. Rectify the following errors assuming that suspension account was opened. June 04: Nandlal returned goods of the list price of ₹ 4,000. Apple Inc is a dealer of laptop & Computers and he is selling goods to John electronics on 01.01.2018 of $ 50000 on credit and his credit period is 15 days which means John Electronics has to make the payment on or before 30.01.2018. Debit the sales account to rectify the wrongly recorded amount ₹ 5,000. If you’re looking for answers to theoretical questions (Test your understanding questions, Short answers and Long answers), you can find them at. 2,000 and posted there from to the credit of M & Co. as Rs. 2,000 were posted to the debit of sales account as Rs. The rectification entry would be. Sold Goods to Khan Brothers Rs. 100 on receiving cash from him was not posted to discount allowed account. Furniture purchased for Rs. Goods withdrawn by proprietor for personal use was wrongly posted as ₹ 300 instead of ₹ 800, the rectification entry would be to post the dirfference again i.e. Furniture purchased for Rs. ; In Trial Balance, only a purchase account is shown with years of the total purchase value, not the cost of goods sold. After purchasing the goods, they are sold including profit. 5,000 were not posted to Debtors account. 100 on receiving cash from him was posted as Rs. 10,000 and wages Rs. Goods returned to Rakesh were not posted, the rectification entry would be to post the goods returned to Rakesh. This page contains solutions to numberical questions solutions for the chapter 6 Trial Balance and Rectification of Errors numberical questions. Goods returned from Mahesh Rs. Old Machinery sold for Rs. Credit purchases from Rohan were posted (credited) as ₹ 6,000 instead of ₹ 9,000, the rectification entry would be to credit the difference of ₹ 3,000 to Rohan’s account (it’ll then be. Furniture purchased from Noor was wrongly recorded in the purchases book as ₹ 5,000 and wrongly posted to the debit of Noor as ₹ 2,000 (it should have been credited with ₹ 6,000) while the actual purchase was worth ₹ 6,000, the rectification entry would be to, Credit the purchases account to rectify the wrong debit of ₹ 5,000, Credit Noor’s account with ₹ 2,000 to rectify the wrong debit of ₹ 2,000, Credit Noor’s account with the credit value of 6,000, Goods returned were wrongly recorded through the sales book as ₹ 1,000, the rectification entry would be to. ... Mohan Singh owes to his landlord ₹ 10,000 as rent. Credit sales to Mohan Rs. Goods returned from Mahesh Rs. Points to Remember. 7,000 were recorded in purchases book. What will be the journal entry for the following - 1)Goods purchased from Mohan for Rs 5000 2)Goods purchased from Mohan on credit Rs 3000 3)Salary paid to Mohan 4)A sum of Rs 120 is realized on the sale of old furniture Debit the suspense account with the total i.e. 7,000 were recorded as Rs.700. 4. Bad debts written off were posted as ₹ 6,000 instead of ₹ 5,000, the rectification entry would be to post the difference i.e. 3,000 was credited to sales account as Rs. Purchases book is overcast (on the debit side) by ₹ 500, the rectification entry would be to credit ₹ 600 and debit ₹ 500 to suspese account. He paid cash to Mohan Rs 1,000. Rectify the errors and prepare suspense account. Krishna A/c Dr 500. Cash received from Ravish was posted (credited) to his account as ₹ 6,000 instead of ₹ 8,000, the rectification entry would be. Material and wages were not posted in the books, the rectification entry would be to post them. 10,000. The rectification entry would be. • debit all the expenses and losses , credit all the incomes and gains-----reason for debit and credit. Creit the suspense account with the difference i.e. 2,000 were posted as Rs. Goods returned to Rakesh were posted (debited) to Naresh, the rectification entry would be to credit the amount debited from Naresh’s account and debit Rakesh’s account. 1200 and total of page 6 was carried forward to page 7 as Rs. Rent paid for residential accommodation of madam (the proprietor) Rs. 200. Credit Sales to Mohan were Posted (debited)to Karan, the rectification entry would be, Credit Karan’s account to rectify the wrongly debited amount of ₹ 5,000, Credit purchases from Rohan were posted to the debit of Gobind, the rectification entry would be, Creit Gobind’s account to rectify the wrongly credited amount of ₹ 10,000, Goods returned to Rakesh were posted to the credit of Naresh, the rectification entry would be, Debit Naresh’s account to rectify the wrongly credited amount of ₹ 3,000, Goods returned to Mahesh were posted to the debit of Manish, the rectification entry would be, Credit Manish’s account to rectify the wrongly debited amount of ₹ 2,000, Cash sales were posted to commission account, the rectification entry would be, Debit the commission account to rectify the wrongly credited amount of ₹ 200. Credit sales to Mohan Rs. 3,000. 50. Goods returned from Mahesh Rs. Journalise the following transactions in the books of Tmt.Amutha Rs. As credit sales to Mohan were not recorded, the rectification would be to record them. 4,000 were posted to the credit of his account. (iii) Sold goods for ₹ 2,50,000 within the state on credit. Sales book is overcast (on the credit side) by ₹ 600, the rectification entry would be to debit ₹ 600 and credit ₹ 600 to the suspense account. Returns inwards book overcast by Rs. Depreciation provided on machinery was not posted to machinery account, the rectification entry would be, Debit the depreciation account with ₹ 4,000, Bad debts written-off were not posted to debtors account, the rectification entry would be, Credit the ₹ 5,000 to the debtors account, Discount allowed to a debtor on receiving cash from hims was not posted to discount allowed account, the rectification entry would be, Debit the discount allowed account with ₹ 100, Goods withdrawn by the proprietor for personal use were not posted to drawings account, the rectification entry would be, Bills receivable received from a debtor were not posted to Bills receivable account, the rectification entry would be, Debit the bills receivable account with ₹ 2,000. Discount allowed to Reema Rs. 2,000 received from a debtor was posted as Rs. o Journal is a primary book for recording the day to day transactions in a chronological order i.e. Bill receivable for Rs. Goods returned from Mahesh Rs. Cash sales to Rana Rs. 3,000. Depreciation provided on machinery Rs. 1,000 were recorded as Rs.100. The following journal recordings will be required to rectify these errors. 14. Voucher Type Particulars Debit Amount Credit Amount Narration 1 Journal By Cash A/c To Capital A/c 10000 - - 10000 Being started Business by Proprietor with cash Rs. 6,000. Sales A/c - Nominal A/c ,its a income of the company , therefore its credited Krishna A/c - personal A/c , Krishna is a buyer who receivers goods , hence its debited -----Journal Entry . 4,000 was posted to landlord’s personal account. 5,000 subject to 10% trade discount and 5% cash discount. In case of a journal entry for cash purchase, ‘Cash’ account and ‘Purchase‘ account are used. 6,000 was not posted to Furniture account. Trial balance of John did not agree. Goods withdrawn for personal use by the proprietor Rs. 2,000 was posted to Kapur’s account. Goods returned from Mahesh were not posted, the rectification entry would be to post the goods returned to Mahesh. 6,000 was not posted to his account. Accounting and Journal entry for credit sales include 2 accounts, debtor and sales. Selling goods in is means when the firm allows the consumer to buy the goods and take a later date is called credit sales of goods. Depreciation provided on machinery Rs. 10,000 and posted to the debit of Manas as Rs. (iv) Paid insurance premium of 20,000 by cheque. 5,000 were not posted. Repairs on machinery Rs. Goods withdrawn by proprietor for personal use Rs. 20,000 was recorded through purchases book. The difference is the firms allowing the customer to pay back the money for the particular goods after sometime. Machinery purchased on credit from Raman for Rs. You may be wondering, Is cost of goods sold a debit or credit? Problem 1: On April 01, 2016 Anees started business with Rs. Credit purchases from Rohan Rs. Goods returned to Ram Rs. 7,000 were recorded in sales Book. 4,000 were posted to the credit of Naresh as Rs 3,000. You will credit your Purchases account to record the amount spent on the materials. Goods withdrawn by proprietor for personal use Rs. Credit sales to Mohan Rs. 3. Total of sales book Rs. Sales are the most important elements of entire business. Salaries paid to an ameployee were debited to his personal account as ₹ 1,200 instead of debiting to salaries account as ₹ 2,000, the rectification entry would be to, Credit the employee account with ₹ 1,200 to rectify the wrong debit of ₹ 1,200. Credit the difference to the suspense account i.e. Trial balance of Anuj did not agree. Credit purchases from M & Co. Rs. In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs. Purchase Furniture for Cash Rs. 1,800 and posted to the credit of Manish as Rs. 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