rectification of errors

  1. Purchase of goods for personal consumption debited to purchase account 2500rs.
    2.purchase of goods from sengupta rs 7,500 was debites to his account
  2. Discout allowed 75rs was credited to discount received
    What will be the rectified entries.
asked Oct 10, 2015 in Rectification of Errors by Mahima (23 points) 402 views

1 Answer

+1 vote
1. Drawings A/c  Dr,  2500

       To Purchase A/c             2500

(Since goods were withdrawn for personal use, it should have been debited to Drawings A/c instead of Purchase A/c)

2. Suspense A/c Dr.  15000

       To Sengupta A/c             15000

(It is assumed that Purchase A/c was debited properly earlier but Sengupta's A/c was wrongly debited instead of crediting, hence now we need to credit Sengupta's A/c with double the amount.  Since it is a one sided error, it will be rectified with the help of suspense account.)

3. Discount A/c            Dr.  75

    Discount Recd A/c  Dr.  75

        To Suspense A/c                150
answered Oct 10, 2015 by jbsclasses (3,971 points)
Thankyou so much Sir :)