Question
Give Journal Entries to rectify the following errors:
1) Goods purchased from Sujit for ₹ 3,000/- were recorded in Sales Book.
2) Goods for ₹5,200/- sold to Sachin was passed through Purchase Book.
3) A customer returned goods worth ₹800/- was recorded in Purchase Return Book.
4) A credit sale of ₹ 240/- to Ajit was entered in the Sales books as ₹ 420/-
5) Sale of old Table and Chairs for ₹ 900/- was treated as sale of goods.
6) Rent paid for proprietor’s residence ₹ 1,200/- , debited to Rent A/c.

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Show the accounting equation for the following transactions and fill the table.
1) Mr. Manohar started business with ₹ 75,000.
2) Purchase Stationery ₹ 1,000
3) Bought goods ₹ 6,000 from Mohan.
4) Sold goods to Radha ₹ 10,000.
5) Purchase Mobile For business ₹ 2,000.
6) Sold goods costing ₹ 20,000 at a profit of ₹ 5,000.
7) Paid salary ₹ 2,500.
Rectify the following errors.
1) Total of the Return Inward book was overcast by ₹200/-
2) Rent of ₹800/- paid to Mr. Amit has been debited to his Personal Account.
3) Goods sold to Mr. Abhiraj ₹350/- have been entered in the Purchases Day Book as ₹530/-
4) Repairs to Furniture ₹300/- have been debited to Furniture and Fixtures A/c
5) Commission received ₹200/- has been posted to the debit of Commission Account.
6) A cheque for ₹320/- issued to Mr. Ram has been wrongly entered in the cash column of the Cash
Book.
Enter the following transaction in a cash book with cash and bank columns for the month of April 2019:
2019 April
1 Started business with cash ₹ 30,000.
2 Opened a current account with the bank and deposited ₹ 9,000.
5 Received ₹ 4,850 for Cash Sales and discount allowed ₹ 50.
6 Purchased goods of ₹ 3,000 @ 10% cash discount and half the amount was paid by cash and remaining by cheque.
9 Received a crossed cheque for ₹ 7,775 from Megha Associates and discount allowed ₹ 25.
12 Purchased machinery of ₹ 13,300 and paid for installation ₹ 700.
15 Received a bearer cheque of ₹ 735 from Rahul in full settlement of his account ₹ 800.
17 Deposited into the bank ₹ 2,000.
20 Transferred ₹ 8,000 from Savings Account to Current Account.
22 Received a hearer cheque from Vinod ₹ 2,230.
24 Deposited the cheque received from Vinod into the bank.
29 Bank informed that cheque received from Vinod is dishonoured.
30 Paid for printing bill book ₹ 660.
31 Withdrew from the bank for office use ₹ 1,000.
Complete the following table.:

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Arjun keeps his books under Single Entry System. His Assets and Liabilities were as under.;
Particulars31.3.2017(₹)31.3.2018(₹)
Cash1,5001,000
Sundry Debtors30,00046,000
Stock35,00031,000
Plant and Machinery61,00075,000
Sundry Creditors15,00013,500
Bills Payable 4,000

During the year 2017-18 he introduced ₹ 15,000 as additional capital. He withdrew ₹ 2,500
every month for his private purpose.
Ascertain his Profit or Loss for the year ended 31st March 2018.

On 31st March 2018 bank Pass Book of Mr. Rajiv showed a credit balance of ₹ 6,300 but Cash Book
showed a different balance. On comparing the two books the following differences were noticed.
i) Cheques sent to bank for collection ₹ 85,000 on 25th March 2018 but a cheque of ₹ 60,000 was
only cleared by bank before 31st March 2018.
ii) Out of cheques issued ₹ 58,500, cheques of ₹ 48,500 were not presented for payment before 31st
March 2018.
iii) A Bill of Exchange for ₹ 4,000 discounted with the bank was dishonoured on 30th March 2018.
Intimation of the same was received on 5th April 2018.
iv) Interest allowed by bank ₹820 appeared twice in the Cash Book.
v) Pass Book debit side was overcast ₹ 200.
vi) Cheque received from Akash ₹ 4,250 deposited into bank for collection was not yet collected.
The entry was recorded in the cash column of Cash Book.
vii) A Bills Payable amounting to ₹ 8,700 paid by bank has not been recorded in the Cash Book.
viii) Mr. Aditya, our customer directly deposited ₹17,000 into our account through NEFT. It was not
recorded in the Cash Book.
Prepare the Bank Reconciliation Statement as on 31st March 2018.
Show the accounting equation for the following transactions.
1) Rohit Sharma started business with cash ₹50,000.
2) Purchased goods from Dhoni on credit ₹10,000
3) Sold goods to Virat on credit ₹20,000.
4) Received Dividend ₹500.
5) Paid for Advertisement ₹500
2019
Jan. 1 Bought goods from Anupam ₹ 8,000.
10 Goods returned to Anupam ₹700.
20 Cash paid to Anupam ₹7,000.
Calculate the following: Sold goods of ₹ 1,00,000 at 10% Trade Discount and 10% cash discount to Ram and received 50% amount by cheque. Calculate the amount of cheque received.

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