i. Prakash's A/c is debited by ₹ 5,000 against ₹ 50,000, hence a further debit of ₹ 45,000 is required. It will be rectified by giving a note on the debit side of Prakash's A/c as under: "To short debit for sales (error rectified)... ₹ 45,000".
Note: In this case since posted word is used, it will stand for the correct side. In this case, it stands for the debit side.
ii. Prakash's A/c is short debited by ₹ 27,000. This error will be rectified by giving a note on the debit side of Prakash's A/c:
"To short debit for sales (error rectified) ... ₹ 27,000".
iii. It is a sales transaction and Prakash’s A/c should be debited. But instead of a debit, a credit of ₹ 2,000 has been given. Therefore,
a. Wrong credit has to be cancelled. For this, debit his account by ₹ 2,000.
b. Debit has to be given of ₹ 20,000.
Hence, Prakash’s A/c has to be debited by ₹ 22,000 (i.e., ₹ 2,000 + ₹ 20,000)
by giving the following note:
“To error rectified for credit sales ... ₹ 22,000”.
iv. Excess debit is made in Ravi’s A/c by ₹ 900. ₹ 900 (i.e., ₹ 6,500 - ₹ 5,600) will be
written on the credit side by giving a note:
“By excess debit on account of sales (now rectified) ... ₹ 900”.
v. Less credit by ₹ 3,177 (i.e.,₹ 8,755 - ₹ 5,578) is given to Nitin’s A/c on account of credit purchases from him. ₹ 3,177 will be written on the credit side of Nitin’s A/c:
“By less credit for purchases (now rectified) ... ₹ 3,177”.
vi. ₹ 8,560 is credited to Nitin’s A/c instead of ₹ 6,580, i.e., excess credit by ₹ 1,980 (i.e., ₹8,560 - ₹ 6,580) is granted. Rectification will be made by following note on the debit side of Nitin’s A/c:
“To excess credit for purchases (now rectified) ... ₹ 1,980”.
vii. Cash sale is recorded in the Cash Book with the amount. However, posting is short by ₹ 27,000. Since the sale is against cash, ‘Sales A/c’ will be credited.
viii. Ritesh’s A/c has been affected by ₹ 10,000 (₹ 5,000 a debit balance not recorded and ₹ 5,000 wrongly credited). Therefore, his account will be debited by ₹ 10,000 as:
“To a debit balance wrongly carried as credit, now rectified ... ₹ 10,000”
ix. In this case, both the accounts are incorrect. Furniture A/c and Rohit’s A/c are short by ₹ 27,000 each. Rectification will be made by passing the following Journal entry:
Note: The error was committed while posting both the sides of the entry since credit purchase of furniture will be recorded in General Journal. Both the sides of the entry are posted with individual amounts.
