Accounting Error Goods Sold Recorded As Goods Purchased

 

Two sided error before preparing trial balance

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.

 

Goods sold wrongly recorded as goods purchase and vice versa   

Business goods are also known as goods, inventory and merchandise.

Sometimes business goods purchased wrongly recorded as goods sold.

It is due to hurry in work or bookkeeper does not know the actual rule to record the transaction.

  

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

 

PROBLEM: 4A

ABC Enterprises has following extracted information (before preparation trial balance):

Goods (inventory or merchandise) sold to Manju $/₹/Rs 7,500 wrongly credited to her account)

Required: Rectified journal entry

Given and working note:

Step 1,					Step 2,
Correct entry				÷
Manju                    To Sales	Dr	7,500	7,500		Purchase           To Manju	Dr	7,500	7,500

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
Manju                    To Sales	Dr	7,500	7,500		Manju           To Purchase	Dr	7,500	7,500

Step 5

Rectified Journal Entry

Date	Particulars		LF	Amount Dr	Amount Cr
	Manju’s account           To Sales account           To Purchase account (Being- machinery purchased wrongly debited to purchase account, now rectified)	Dr		15,000	7,500 7,500

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PROBLEM: 4B

Goods sold wrongly recorded as goods purchase and other account 

Following extracted information is given to you (before preparation trial balance):

(a) Goods sold to Rohan for Rs 3,856 was posted to the credit side of her account.

(b) Goods sold to VR Traders for Rs 13,467 has wrongly been debited to RV Traders.

Required: Rectified journal entries

 

(a) Given and working note:

Step 1,					Step 2,
Correct entry				÷	Wrong entry
Rohan           To Sales	Dr	3,856	3,856		Puchase           To Rohan	Dr	3,856	3,856

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
Rohan                  To Sales	Dr	3,856	3,856		Rohan           To Purchase	Dr	3,856	3,856

 

(b) Given and working note:  

Step 1,					Step 2,
Correct entry				÷	Wrong entry
VR Traders                       To Sales	Dr	13,467	13,467		RV Traders           To Sales	Dr	13,476	13,467

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
VR Traders           To Sales	Dr	13,467	13,467		Sales           To RV Traders	Dr	13,467	13,476

Step 5,

Rectified Journal Entry

Date	Particulars		LF	Amount Dr	Amount Cr
(a)	Rohan’s account           To Sales account           To Purchase account (Being- goods sold to Rohan wrongly recorded as purchase, now rectified)	Dr		7,712	3,856 3,856
(b)	VR Traders account           To RV Traders account (Being- goods sold to VR wrongly debited to RV, now rectified)	Dr		13,467	13,467

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PROBLEM  AND  ANSWER

 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = 

Basic Problem: 4

Goods sold wrongly recorded as goods purchase and other account 

Following extracted information is given to you (before preparation trial balance):

(a) Goods sold to Rekha for Rs 4,000 was posted to the credit side of her account.

(b) Goods sold to Pooja Traders for Rs 5,000 has wrongly been debited to Puja Traders.

(c) Goods sold to Ritika Rs 15,000 have been wrongly passed through purchase book.

(d) Goods sold to Shankar Rs 10,000 wrongly entered into Shanker’s account Rs 1,000 only.

Required: Rectified journal entries

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