Following errors have been deducted. Rectify the errors.
(i) Purchases Book is undercast by 100. (ii) Sales Book is overcast by 300. (iii) Sold goods to Ram for 5,000 less 10% trade discount has been recorded in the sales book but omitted to be posted to his account. (iv) Bought goods from Kamal 2,000 has been recorded in the purchases book and then debited to his account.
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Answer:
The errors that have been detected can be rectified by making the following journal entries:
Date Particulars Debit (Rs.) Credit (Rs.)
1 Purchases A/c Dr. <br> To Suspense A/c 100 <br> 100
2 Suspense A/c Dr. <br> To Sales A/c 300 <br> 300
3 Ram A/c Dr. <br> To Sales A/c 4,500 <br> 4,500
4 Kamal A/c Dr. <br> To Purchases A/c 2,000 <br> 2,000
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Answer:
(i) Purchases Book is undercast by 100:
To correct this error, we need to increase the total of the Purchases Book by 100.
(ii) Sales Book is overcast by 300:
To correct this error, we need to decrease the total of the Sales Book by 300.
(iii) Sold goods to Ram for 5,000 less 10% trade discount has been recorded in the sales book but omitted to be posted to his account:
This means that the sale was recorded correctly in the Sales Book, but the corresponding entry in Ram's account was not made. We need to make the necessary entry in Ram's account:
Ram's Account (Dr) ₹4,500 (5,000 less 10% discount) To Sales A/C ₹4,500
(iv) Bought goods from Kamal 2,000 has been recorded in the purchases book and then debited to his account:
This implies that the purchase was correctly recorded in the Purchases Book, but an incorrect entry was made in Kamal's account. We need to correct Kamal's account:
Purchases A/C (Dr) ₹2,000 To Kamal's Account ₹2,000
After making these corrections, the books will be balanced. Keep in mind that it's important to always double-check entries to prevent errors like these in the future.