Page 216 - ISCDEBK-XI

21.4 Double Entry Book Keeping—ISC XI
Solution: RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)

(i) Preeti ...Dr. 2,800
To Jyoti 2,000
To Suspense A/c 800
(Being the cash paid to Preeti wrongly debited to Jyoti, now rectified)
(ii) Furniture A/c ...Dr. 5,000
To Purchases A/c 5,000
(Being the purchase of tables and chairs debited to Purchases, now rectified)
(iii) Machinery A/c ...Dr. 7,000
To Wages A/c 7,000
(Being the wages paid for machinery erection wrongly debited to
Wages A/c, now rectified)

(iv) Depreciation A/c ...Dr. 1,000
To Suspense A/c 1,000
(Being the depreciation on Machinery not posted to Depreciation A/c, now posted)
(v) Drawings A/c ...Dr. 1,000
To Purchases A/c 1,000
(Being the goods purchased for proprietor now debited to Drawings A/c)
(vi) Purchases A/c ...Dr. 4,500
To Suspense A/c 4,500
(Being the goods purchased for ` 5,000 recorded as ` 500, now rectified)
(vii) Suspense A/c ...Dr. 1,800
To Purchases A/c 1,800
(Being the goods purchased for ` 200 recorded as ` 2,000, now rectified)
(viii) Suspense A/c ...Dr. 2,000
To Preeti 2,000
(Being ` 1,000 received from Preeti debited to her account, now rectified)
(ix) Returns Inward A/c ...Dr. 1,000
To Suspense A/c 1,000
(Being the Returns Inward Book short totalled for December, now rectified)
(x) Ranbir ...Dr. 1,000
To Purchases Return A/c 1,000
(Being the purchase return of ` 1,000 to Ranbir, now recorded)
(xi) No Journal Entry is to be passed as it has already been correctly passed in the
Journal. Merely posting in both the accounts in the ledger is required.

Illustration 3.
The books of account of Kapil for the year ended 31st March, 2022, were closed with diference
in the Trial Balance carried forward. Subsequently, the following errors were detected:
(i) ` 1,500 being the total of discount column on the credit side of the Cash Book was not
posted in the Ledger.
(ii) Closing Stock was overstated by ` 9,000 being casting error in the schedule of inventory.