Before preparation of the trial balance, the following errors were found in the books of Saraswat & Sons. Give the necessary entries to correct them. (i) Furniture purchased for of... Before preparation of the trial balance, the following errors were found in the books of Saraswat & Sons. Give the necessary entries to correct them. (i) Furniture purchased for office use amounting to ` 20,000 has been entered in the purchase day book. (ii) An amount of ` 3,000 due from Satyam, which had been written off as bad debts in the previous year, recovered in the current year, and had been posted to the personal Account of Satyam. (iii) Minor Repairs made to the building amounting to ` 18,500 were debited to the Building Account (iv) Goods purchased from Ram Singh amounting to ` 18,000 have remained unrecorded so far. (v) College fees of proprietor's son, ` 15,000 debited to the Audit fees Account. (vi) Receipt of ` 4,500 from Kanika credited to the Anita. (vii) Goods amounting to ` 8,900 had been returned by a customer and were taken into inventory, but no entry was made in the books. (viii) ` 7,500 paid for wages to workmen for making office furniture had been charged to wages account. (ix) Salary paid to a clerk ` 18,000 has been debited to his personal account. (x) A purchase of goods from Raghav amounting to ` 20,000 has been wrongly entered through the sales book.
Understand the Problem
The question is asking for the necessary journal entries to correct specific accounting errors found in the books of Saraswat & Sons before preparing the trial balance. Each listed error requires a particular adjustment to ensure that the financial records accurately reflect the company's transactions.
Answer
To correct errors: (i) Dr Furniture, Cr Purchases ₹20,000; (ii) Dr Satyam, Cr Bad Debts Recovered ₹3,000; (iii) Dr Repairs, Cr Building ₹18,500; (iv) Dr Purchases, Cr Ram Singh ₹18,000; (v) Dr Drawings, Cr Audit Fees ₹15,000; (vi) Dr Anita, Cr Kanika ₹4,500; (vii) Dr Sales Returns, Cr Customer ₹8,900; (viii) Dr Furniture, Cr Wages ₹7,500; (ix) Dr Salary, Cr Clerk’s Personal Account ₹18,000; (x) Dr Purchases, Cr Sales ₹20,000.
The correct entries to rectify the errors are as follows: (i) Debit Furniture Account and credit Purchases Account with ₹20,000. (ii) Debit Satyam’s Account and credit Bad Debts Recovered Account with ₹3,000. (iii) Debit Repairs Account and credit Building Account with ₹18,500. (iv) Debit Purchase Account and credit Ram Singh’s Account with ₹18,000. (v) Debit Drawings Account and credit Audit Fees Account with ₹15,000. (vi) Debit Anita’s Account and credit Kanika’s Account with ₹4,500. (vii) Debit Sales Returns Account and credit Customer’s Account with ₹8,900. (viii) Debit Furniture Account (WIP) and credit Wages Account with ₹7,500. (ix) Debit Salary Account and credit Clerk's Personal Account with ₹18,000. (x) Debit Purchases Account and credit Sales Account with ₹20,000.
Answer for screen readers
The correct entries to rectify the errors are as follows: (i) Debit Furniture Account and credit Purchases Account with ₹20,000. (ii) Debit Satyam’s Account and credit Bad Debts Recovered Account with ₹3,000. (iii) Debit Repairs Account and credit Building Account with ₹18,500. (iv) Debit Purchase Account and credit Ram Singh’s Account with ₹18,000. (v) Debit Drawings Account and credit Audit Fees Account with ₹15,000. (vi) Debit Anita’s Account and credit Kanika’s Account with ₹4,500. (vii) Debit Sales Returns Account and credit Customer’s Account with ₹8,900. (viii) Debit Furniture Account (WIP) and credit Wages Account with ₹7,500. (ix) Debit Salary Account and credit Clerk's Personal Account with ₹18,000. (x) Debit Purchases Account and credit Sales Account with ₹20,000.
More Information
These corrections adjust entries to correct accounts, reflecting accurate financial transaction classifications while ensuring the integrity of the trial balance.
Tips
Common mistakes include not matching the correction entry exactly to the original error, and not using the correct account titles.
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