Page 227 - ISCDEBK-XI

Rectification of Errors 21.15
Pass Journal entries to rectify the above mentioned errors. Ascertain the total amount of
difference in Trial Balance.
Solution: RECTIFYING JOURNAL ENTRIES
Date Particulars L.F. Dr. (`) Cr. (`)
(a) Acceptor’s A/c ...Dr. 15,000
To Bills Receivable A/c 15,000
(Being bill dishonoured wrongly debited to Bills Receivable Account
and not to the Acceptor’s Account, now rectified)
(b) Sales A/c ...Dr. 10,000
To Plant A/c 10,000
(Being a sale of sundry items of plant wrongly credited to the
Sales Account intead of Plant Account, now rectified)
(c) Suspense A/c ...Dr. 100
To Discount Received A/c 100
(Being rectification of the discount allowed by a creditor omitted to be
posted to Discount Received Account)
(d) Returns Inward A/c ...Dr. 2,000
Sales A/c ...Dr. 2,000
To Gaurav 4,000
(Being goods returned by Garuav wrongly entered in the Sales Book,
now rectified)
(e) Suspense A/c ...Dr. 910
To Merchant’s A/c 910
(Being rectification of a less credit given to Merchant Account)
(f) Suspense A/c ...Dr. 200
To Customer’s A/c 200
(Being goods worth ` 100 returned by a customer wrongly debited
to him instead of being credited, now rectified)
(g) Returns Outward A/c ...Dr. 150
To Shiv 150
(Being goods returned charged at selling price and not at invoice price
at which these were purchased, now rectified)

(h) Drawings A/c ...Dr. 1,500
To Purchases A/c 1,500
(Being goods taken by the proprietor omitted to be recorded,
now recorded)
(i) Mr. Rahim ...Dr. 4,200
To Bad Debts Recovered A/c 4,200
(Being the amount received from Mr. Rahim written off as
irrecoverable last year wrongly credited to Mr. Rahim instead
of Bad Debts Recovered Account, now stands corrected)

(j) Cash A/c ...Dr. 30,000
To Customers’ A/c 20,000
To Sales A/c 10,000
(Being cash received from debtors and cash sales omitted to be
recorded, now recorded)