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.
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 |
********
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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