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P. 130
Rectification of Errors 17.5
(iv) A cheque for ` 7,500 received from S. Desai was credited to the account of R Ram.
(v) Goods to the value of ` 700 returned by X were included in the Closing Stock
but no entry was made in the books.
(vi) Goods costing ` 2,000 were purchased for various members of the staff and
the cost was included in “Purchases”. A similar amount was deducted from
the salaries of the staff members concerned and the net payments to them
debited to Salaries Account.
(vii) Goods sold to Mohan for ` 475 have been wrongly entered in the Sales Book
as ` 745.
Solution: JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Building A/c ...Dr. 20,000
To Repairs A/c 20,000
(Erection charges wrongly shown as revenue expenditure,
now rectified by capitalising the same)
(ii) Repairs A/c ...Dr. 5,000
To Plant and Machinery A/c 5,000
(Repairs wrongly capitalised instead of being treated as revenue
expenditure, now rectified)
(iii) Plant and Machinery A/c ...Dr. 7,000
To Wages A/c 7,000
(Wages for additions to Machinery wrongly treated as
Revenue expenditure, now rectified by capitalising the same)
(iv) R. Ram ...Dr. 7,500
To S. Desai 7,500
(Wrong posting of cheque received rectified)
(v) Returns Inward A/c ...Dr. 700
To X 700
(Returns inward not recorded by mistake, now rectified)
(vi) Salaries A/c ...Dr. 2,000
To Purchases A/c 2,000
(Goods purchased for staff members wrongly recorded
as purchases, now rectified)
(vii) Sales A/c ...Dr. 270
To Mohan 270
(Excess recording of sales in Sales Day Book rectified)