ACCOUNTING ENTRIES
Rectification of Error
Q1. Rectified the following simple errors
1. Paid Rs200 for the purchase of a furniture posted to purchase account. 2. Paid Rs150 for the installation of machinery debited to wages account. 3. An amount of Rs 100 received from Mr. Ali was credited to the Mr. Ahmed.
4. A purchase of goods from Smith Rs 500 has been wrongly debited to Furniture Account. 5. A sum of Rs 200 drawn by the proprietor was debited to travelling expenses.
6. Sales return from Ali, totaling Rs 150 has not been entered in the return inwards book at all. 7. Machinery bought Rs 100, posted as purchases.
8. Carriage on machinery Rs 100 has been debited to carriage account. 9. Repair to car Rs 299 have been debited to car account.
10.An amount of Rs 200 received on account of commission was credited to interest account.
Dr.
Cr.
Date
Details/particulars
L/FAmounts Amounts
1.
Ali
Suspense
(Ali account was overcast)
200
200
2.
Suspense
Sale
(sale book was under cast)
500
500
3.
Suspense
Rent Receivable
(A credit balance was 755 and 570 shown)
185
185
4.
Sarwar
Suspense
(sale to sarwar)
550
550
5.
Cash
Suspense
(balance of petty cash in hand)
300
300
6.
Rehman
Suspense
(debit balance in Rehman)
370
370
7.
Sales
Suspense
(sales book was overcast)
200
200
8.
Discount
Suspense
(debit side of the cash book was under-added)
50
1. The total of the credit side of Ali account was over cast by Rs 200
2. The sales book was under cast by Rs 500
3. A credit balance of Rs 755 of Rent receivable was shown Rs 570
4. Sale to Serwer of Rs 550 was not posted
5. The balance of petty cash in hand of Rs 150 was placed on the credit side of trial balance
6. A debit balance of Rs 370 in Rehman was omitted from the balance
7. Sales book was overcast Rs 200
8. The discount column on the debit side of the cash book was under-added by Rs 50
Dr.
Cr.
Date
Details/particulars
L/FAmounts Amount
s
1.
Furniture
Purchase
(purchase on furniture posted to purchase A/c)
200
200
2.
Machinery
Wages
(machinery debited to wages account)
150
150
3.
Ahmed
Ali
(amount received from Ali to Ahmad)
100
100
4.
Purchase
Furniture
(purchase goods was wrongly debited to furniture A/c)
500
500
5.
Sales Return
Ali
150
150
6.
Machinery
Purchase
(machinery bought and posted as purchase)
100
100
7.
Machinery
Carriage
(carriage on machinery debited to carriage A/c)
100
1. Machinery sold for Rs 10,000 has been posted to Sales account.
2. Rs 5,000 withdrawn by the proprietor for his personal use have been debited to trade Expenses account.
3. Cost of repair Rs 500 has been charged to Machinery account.
4. Rs 3,900 received from Saleem have been posted to Waseem account.
5. Purchase of goods from Arshad & Co Rs 4,000 was omitted to be recorded in books. 6. Rs 9,500 paid to Nazir have been wrongly debited to Kabir account.
Dr.
Cr.
Date
Details/particulars
L/FAmounts Amounts
1.
Sales
Machinery
(machinery posted has been posted to sales A/c)
10,000
10,000
2.
Drawing
Trade Expense
(trade to Suspense)
5,000
5,000
3.
Repair
Machinery
(cost of repair has been charged to machinery A/c)
500
500
4.
Waseem
Saleem
3,900
3,900
5.
Purchase
Arshad & Co.
(Purchase goods from Arshad & Co.)
4,000
4,000
6.
Nazir
Kabir
(paid to nazir have been wrongly debited to kabir)
9,500
1. Legal expenses Rs 3,000 paid to lawyer have been wrongly debited to his personal account. 2. A bill receivable for Rs 2,000 was passed though bill payable book the bill was given by Ali. 3. Trade expense of Rs 180 posted in the ledger as Rs 810.
4. A sale of Rs 3,000 to a was wrongly debited to the account B. 5. Sales book was overcast by Rs 3,000.
6. Total of the sales book Rs 54540 was posted to the sales account as Rs 55440.
Dr.
Cr.
Date
Details/particulars
L/FAmounts Amounts
1.
Legal Expenses
Lawyer Personal
(legal expenses wrongly debited to personal A/c)
3,000
3,000
2.
Bill Receivable
Bill Payable
Ali
(B/R and B/P is given by Ali)
2,000
2,000
4,000
3.
Suspense
Trade Expense
(trade expense posted in ledger)
630
630
4.
A
B
(A was wrongly debited to B Account)
3,000
3,000
5.
Sales
Suspense
(sales book was overcast)
3,000
3,000
6.
Sales
Suspense
(total of the sales was posted to the sales A/c)
900
1. An amount of Rs 900 paid for installation of machinery was debited to the wages account. 2. Salaries paid Rs 950 were debited to the salaries account as Rs 590.
3. Goods sold to Ali Rs 9,000 were debited to Alia account.
4. A bill of Rs 2,000 paid for owner’s personal use was wrongly debited to Trade expense account. 5. Rs 300 received from Ali whose account had already been written off as bad debts were credited
to his account.
6. Goods purchased for Rs 4,200 from Ali recorded in to sales book.
Dr.
Cr.
Date
Details/particulars
L/FAmounts Amounts
1.
Machinery
Wages
(machinery was debited to wages account)
900
900
2.
Salary
Suspense
(salaries were debited to the salaries account)
360
360
3.
Ali
Alia
(goods sold to Ali were debited to alia A/c)
9,000
9,000
4.
Drawing
Trade Expense
(personal use was wrongly debited to trade expense A/c)
2,000
2,000
5.
Ali
Bad Debts Recovered
(bad debts A/c to Ali A/c)
300
300
6.
Purchase
Sales
Ali
(purchase goods from Ali into sales book)
4,200
4,200
1. A purchase of Rs 10,000 from Akram was wrongly passed through the sales book. 2. A purchase of Rs 4,800 from Serwer was wrongly passed through the sales return book. 3. A sale of Rs 8,000 to Babar was wrongly passed through the sales return book.
4. A sale of Rs 12,000 to Hafeez was wrongly passed through the purchase book. 5. A sale of Rs 6,400 to Liaqat was wrongly passed through the purchase return book.
Dr.
Cr.
Date
Details/particulars
L/F
Amounts
Amounts
1.
Purchase
Sales
Akram
(purchase & sales goods to Akram)
10,000
10,000
20,000
2.
Purchase
Sales Return
Serwer
(purchase & sales return to Serwer)
4,800
4,800
9,600
3.
Babar
Sales
Sales Return
(sales & sales return to Babar)
16,000
8,000
8,000
4.
Hafeez
Purchase
Sales
(purchase & sales to Hafeez)
24,000
1. A sale of Rs 496 to Ashraf was entered in the sales book as Rs 694. Ashraf account was however debited, with Rs 964.
2. A bill received from Salman & Co. for repair done to furniture Rs 200 and furniture purchased for Rs 2,000 was wrongly entered in the purchase book.
3. An item of Rs 4,000 relating to prepaid rent was omitted to be brought forward.
4. Received a final dividend of Rs 400 from Anwar whose account had previously been written off as bad debts, was credited to his newly opened account.
5. An item of purchase of Rs 1510 was entered in the purchase book at Rs 150 and posted to the supplier’s account Rs 510.
6. A sale return of Rs 1,000 was not passed through the sale returns book, through goods were duly taken into the stock.
Dr.
Cr.
Date
Details/particulars
L/F
Amounts
Amounts
1.
Sales Account
Suspense Account
Ashraf
(sales, suspense to ashraf)
198
270
468
2.
Repair Account
Furniture Account
Purchase Account
(repair, furniture to purchase A/c)
200
2,000
2,200
3.
Prepaid Rent Account
Suspense Account
(item relating to prepaid rent)
4,000
4,000
4.
Anwar
Bad Debts Account
(bad debts was opening a new account to Anwar)
400
400
5.
Purchase Account
Supplier Account
Suspense Account
(purchase to supplier and suspense A/c)
1,360
1,000
360
6.
Sales Return Account
Debtor Personal Account
(sales Return to debtor personal A/c)
1,000
1. A bill of goods Rs 10,000 for credit sales to Zahid has been recorded in the sales book.
2. Goods purchased from Khalid Bros. for Rs 15,000 have been entered in the purchase book as Rs 51,000.
3. An amount of Rs 200 spent on the purchase of stationary has been debited to salaries account. 4. A sum of Rs 5,000 received from Asif was not entered in the cash book.
5. The sales return book for December has been cast Rs 5,000 short.
6. While carrying forward the total of the sales book from page no 14 to page no 15, the amount was written as Rs 157786 instead of Rs 175586.
Dr.
Cr.
Date
Details/particulars
L/F
Amounts
Amounts
1.
Zahid
Sales
(sahid does not recorded in the sales book)
10,000
10,000
2.
Khalid
Purchase
(purchase goods from Khalid)
36,000
36,000
3.
Stationary
Sales
(stationary has been debited to the salary account)
200
200
4.
Cash
Asif
(Asif was not enter in the cash book)
5,000
5,000
5.
Sales Return
Suspense
(the sales return has been cast)
5,000
5,000
6.
Suspense
Sales
(sales book has been overcast)
17,800
1. Table purchased costing Rs 650 had been through the purchase day book.
2. Rs 8,000 paid for wages to workmen for making show cases had been charged to the wages account.
3. A sale of Rs 18,000 has been passed through the purchase book. The customer’s account has, however been correctly debited.
4. A sale of Rs 4,500 to Kashif Bros. was credited to their account.
5. Rs 30,000 paid for the purchase of a Motor Cycle for a partner, had been charged to the miscellaneous expenses account.
6. A purchase of Rs 696 had been debited to supplier’s account as Rs 632. The supplier was Sarwer.
Dr.
Cr.
Date
Details/particulars
L/F
Amounts
Amounts
1.
Furniture
(purchase furniture and wages)
8,000
8,000
3.
Suspense
Purchase
Sales
(purchase and sales of goods)
36,000
18,000
18,000
4.
Kashif
Suspense
(sales goods of Kashif)
9,000
9,000
5.
Drawing
Miscellaneous Expenses
(purchase of a Motor Cycle for a partner)
30,000
30,000
6.
Suspense
Serwer
(purchase goods for Serwer)
1,328
Dr.
Cr.
Date
Details/particulars
L/F
Amounts
Amounts
1.
Azhar & Co.
Suspense
(Azhar & Co. to suspense)
2,000
2,000
2.
Suspense
Interest
(suspense to interest)
2,400
2,400
3.
Mukhtar
Purchase Return
Sales Return
(Mukhtar to purchase return and sales return)
6,000
3,000
3,000
4.
Naeem
Suspense
(Naeem to suspense)
360
360
5.
Furniture
Building
(furniture to building)
5,000
5,000
6.
Suspense
Wages
(suspense to wages)
8,000
8,000
Suspense Account
Date
Details
Amount
Rs.
Date
Details
Amount
Rs.
Balance B/d
8,040
2.
Interest
2,400
1.
Azhar & Co.
2,000
6.
Wages
8,000
4.
Naeem
360
Dr.
Cr.
Date
Details/particulars
L/F
