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 expense wrongly recorded to name of other expense.
It is due to hurry in work or bookkeeper does not know the actual account heading to record.
PROBLEM: 2A
Following is extracted data before preparing trial balance:
General expenses paid of $/₹/Rs 3,000 have been debited to commission paid account.
Required: Rectified journal entry
Given and working note:
Step 1, |
÷ |
Step 2, |
||||||
Correct entry |
|
Wrong entry |
||||||
General expenses To Cash |
Dr
|
3,000 |
3,000 |
|
Commission paid To Cash |
Dr
|
3,000 |
3,000 |
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 |
||||||
General expenses To Cash |
Dr
|
3,000 |
3,000 |
|
Cash To Commission paid |
Dr
|
3,000 |
3,000 |
Step 5,
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
General expenses account To Commission paid account (Being- wrong entry, now rectified) |
Dr
|
|
3,000 |
3,000 |
###########
Click on link for YouTube videos
ACCOUNTING EQUATION http://tiny.cc/c89jkz
BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz
BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz
JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz
LEDGER http://tiny.cc/haakkz
SUBSIDIARY BOOK http://tiny.cc/399jkz
CASH BOOK http://tiny.cc/889jkz
TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz
BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz
DEPRECIATION http://tiny.cc/ugakkz
FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz
ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz
CAPITAL AND REVENUE http://tiny.cc/peakkz
SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz
NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz
GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz
GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz
###########
PROBLEM: 2B
Extracted data before preparing trial balance is:
Discount allowed $/₹/Rs 4,000 was credited to as discount received.
Required: Rectified journal entry
Given and working note:
Step 1, |
÷ |
Step 2, |
||||||
Correct entry |
|
Wrong entry |
||||||
Discount allowed To Cash |
Dr
|
4,000 |
4,000 |
|
Cash To Discount received |
Dr
|
4,000 |
4,000 |
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 |
||||||
Discount allowed To Cash |
Dr
|
7,000 |
7,000 |
|
Discount received To Cash |
Dr
|
4,000 |
4,000 |
Step 5,
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
|
Discount allowed account Discount received account To Cash account (Being- wrong entry, now rectified) |
Dr Dr
|
|
4,000 4,000 |
8,000 |
********
PROBLEM AND ANSWER |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
Basic Problem: 2
Expenses wrongly recorded to other expenses
Following extracted information is given to you (before preparation trial balance):
(a) General expenses of Rs 10,000 have been debited to commission paid account.
(b) Wage paid of Rs 7,500 paid for has been wrongly debited to salaries account.
(c) Rs 3,000 drawn by the owner for his personal use has been debited to general expenses
(d) House rent paid Rs 15,000 wrongly debited to commission paid account.
(e) Discount allowed Rs 3,000 was credited to as discount received.
(f) Commission paid in cash to Santosh was credited as commission received Rs 5,000.
(g) Purchase of computer print paper of Rs 2,275 has been recorded as purchase account
(h) Goods distributed as free sample Rs 2,750 recorded as cash sales Rs 2,570.
Required: Rectified journal entries
[Answer: given in the question]
***********
Thank you for investing your time.
Please comment on article.
You can help me by sharing this article at your social media platform.
Jay Google, Jay YouTube, Jay Social Media
जय गूगल, जय युट्युब, जय सोशल मीडिया