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.
On after preparing trial balance, we should write ‘suspense’ in place of ‘cash’ on final rectified journal entry,
Accounting error after preparing trail balance mixed questions are the collection of different numerical questions. It is exam based problem.
Problem: 14
The following data find out by Max Traders after preparing trial balance:
(a) Goods sold to Mr Pawan Rs 5,000 was wrongly debited to purchase account.
(b) Goods purchase from GK Emporium Rs 12,000 was omitted to record.
(c) Goods returned by DK Traders Rs 525 was posted to KD Traders.
(d) Goods sold to SR Enterprises of Rs 2,575 were recorded as Rs 5,725.
(e) Rent paid Rs 5,200 was posted as Rs 2,500.
Required: Rectification of error
[Answer: (a) Debited Pawan by 10,000; (b) Purchase debited by 12,000;
(c) KD Traders debited by 525; (d) Sales debited by 3,150; (e) Rent debited by 2,700
SOLUTION:
Given and working note:
(a) Goods sold to Mr Pawan Rs 5,000 was wrongly debited to purchase account.
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Pawan To Sales |
Dr
|
5,000 |
5,000 |
|
Purchase To Pawan |
Dr
|
5,000 |
5,000 |
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 |
||||||
Pawan To Sales |
Dr
|
5,000 |
5,000 |
|
Pawan To Purchase |
Dr
|
5,000 |
5,000 |
(b) Goods purchase from GK Emporium Rs 12,000 was omitted to record.
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Purchase To GK Emporium |
Dr
|
12,000 |
12,000 |
|
No entry |
|
|
|
(c) Goods returned by DK Traders Rs 525 were posted to KD Traders.
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Sales return To DK Traders |
Dr
|
525 |
525 |
|
Sales return To KD Traders |
Dr
|
525 |
525 |
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 |
||||||
Sales return To DK traders |
Dr
|
525 |
525 |
|
KD Traders To Sales return |
Dr
|
525 |
525 |
(d) Goods sold to SR Enterprises of Rs 2,575 were recorded as Rs 5,725.
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
SR Enterprises To Sales |
Dr
|
2,575 |
2,575 |
|
SR Enterprises To Sales |
Dr
|
5,725 |
5,725 |
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 |
||||||
SR Enterprises To Sales |
Dr
|
2,575 |
2,575 |
|
Sales To SR Enterprises |
Dr
|
5,725 |
5,725 |
(e) Rent paid Rs 5,200 was posted as Rs 2,500.
Step 1, |
|
Step 2, |
||||||
Correct entry |
÷ |
Wrong entry |
||||||
Rent To Cash |
Dr
|
5,200 |
5,200 |
|
Rent To Cash |
Dr
|
2,500 |
2,500 |
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 |
||||||
Rent To Cash |
Dr
|
5,200 |
5,200 |
|
Cash To Rent |
Dr
|
2,500 |
2,500 |
###########
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###########
Rectified Journal Entry
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
(a) |
Pawan’s account To Sales account To Purchase account (Being- goods sold to Pawan wrongly recorded as Goods purchased from him, now rectified) |
Dr
|
|
10,000 |
5,000 5,000 |
(b) |
Purchase account To GK Emporium account (Being- goods purchase from him omitted to record, now recorded) |
Dr |
|
12,000 |
12,000 |
(c) |
KD Traders account To DK Traders account (Being- sales returned by DK Traders was wrongly posted to KD Traders, now rectified) |
Dr |
|
525 |
525 |
(d) |
Sales account To SR Enterprises (Being- goods sold to him over recorded by (5,725 – 2,575)= Rs 3,150, now rectified) |
Dr |
|
3,150 |
3,150 |
(e) |
Rent account To Suspense account (Being- rent paid under recorded by (5,200 – 2,500) Rs 2,700, now rectified) |
Dr |
|
2,700 |
2,700 |
***********
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