When an error affects two sides, it is known two sided errors.
This type of error needs journal entry to rectify.
Such error affects two side, debit and credit.
Double entry system of bookkeeping is applied for this error.
Procedures for two sided errors before preparing trial balance are given below:
Step 1: write correct entry of the transaction,
Step 2: write wrong entry of the transaction,
Step 3: write correct entry as it is,
Step 4: change wrong entry (debit entry to credit and credit entry to debit),
Step 5: find out rectified journal entry.
Sometimes one income wrongly recorded to name of expense.
There are some transitions which are income and expenses.
They are discount, commission, interest, rent etc.
PROBLEM: 3A
Extracted information is before preparation trial balance:
Discount received $/₹/Rs 775 has been wrongly recorded as discount paid.
Required: Rectified journal entry
Given and working note:
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Cash To Discount recd. |
Dr
|
775 |
775 |
|
Discount allowed To Cash |
Dr
|
775 |
775 |
Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited
Step 3, |
|
Step 4, |
||||||
Correct entry |
x |
Wrong entry |
||||||
Cash To Discount recd. |
Dr
|
775 |
775 |
|
Cash To Discount allowed |
Dr
|
775 |
775 |
Step 5,
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
Cash account To Discount received account To Discount allowed account (Being- discount received wrongly recorded as Discount allowed, now rectified) |
Dr
|
|
1,550 |
775 775 |
PROBLEM: 3B
Following extracted information is given to you (before preparation trial balance):
Cash received from CK Traders (debtor) $/₹/Rs 12,300 has been debited.
Required: Rectified journal entry
Given and working note:
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Cash To CK Traders |
Dr
|
12,300 |
12,300 |
|
CK Traders To Cash |
Dr
|
12,300 |
12,300 |
Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited
Step 3, |
|
Step 4, |
||||||
Correct entry |
x |
Wrong entry |
||||||
Cash To CK Traders |
Dr
|
12,300 |
12,300 |
|
Cash To CK Traders |
Dr
|
12,300 |
12,300 |
Step 5,
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
Cash account To CK Traders account (Being- wrong entry, now rectified) |
Dr
|
|
24,600 |
24,600 |
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###########
PROBLEM: 3C
Following extracted information is given to you (before preparation trial balance):
Cash received from CK Traders (debtor) $/₹/Rs 5,500 has been recorded as KC Traders.
Required: Rectified journal entry
Given and working note:
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Cash To CK Traders |
Dr
|
5,500 |
5,500 |
|
Cash To KC Traders |
Dr
|
5,500 |
5,500 |
Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited
Step 3, |
|
Step 4, |
||||||
Correct entry |
x |
Wrong entry |
||||||
Cash To CK Traders |
Dr
|
5,500 |
5,500 |
|
KC Traders To Cash |
Dr
|
5,500 |
5,500 |
Step 5,
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
KC Traders account To CK Traders account (Being- wrong entry, now rectified) |
Dr
|
|
5,500 |
5,500 |
********
PROBLEM AND ANSWER |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
Basic Problem: 3
Cash received or income wrongly recorded as cash paid or vice versa
Following extracted information is given to you (before preparation trial balance):
(a) Cash received Rs 15,000 from Shobha (debtor) has been debited to her account.
(b) Rs 4,500 received from Manisha was posted to the debit of her account.
(c) Amount received from KK Traders Rs 13,700 was debited to its account
(d) Rs 3,000 received from Ram Krishna was posted into Krishna Ram’s account.
(e) Rent received from Prakash Rs 10,000 in cash, has been wrongly credited to his account.
Required: Rectified journal entries
***********
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