Accounting Error Purchase Return Sales Return

   

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.

 

Purchase return and sales return

Purchase return means goods goes out. It is returned to suppliers.

Sales return means goods comes in. it is returned from customers.

Sometimes bookkeeper or accountant does error to record these transactions.

 

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

 

PROBLEM: 6

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

(a) Returned inward of Rs 3,570 were wrongly recorded into purchase account.

(b) Rs 6,575 being purchase returns to Eshna was posted to the purchase book.

Required: Rectified journal entries

(a) Given and working note:

Step 1,					Step 2,
Correct entry				÷	Wrong entry
Sales return           To Debtor	Dr	3,570	3,570		Purchase           To Creditor	Dr	3,570	3,570

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 Debtor	Dr	3,570	3,570		Creditor           To Purchase	Dr	3,570	3,570

###########

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

###########

(b) Given and working note:  

Step 1,					Step 2,
Correct entry				÷	Wrong entry
Eshna                     To Purchase return	Dr	6,575	6,575		Purchase           To Eshna	Dr	6,575	6,575

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
Eshna                     To Purchase return	Dr	6,575	6,575		Eshna           To Purchase	Dr	6,575	6,575

 Step 5,

Rectified Journal Entry

Date	Particulars		LF	Amount Dr	Amount Cr
(a)	Sales return account Creditor account           To Debtor account           To Purchase account (Being- sales return wrongly recorded as goods purchased on credit, now rectified)	Dr Dr		3,570 3,570	3,570 3,570
(b)	Eshna’s account           To Purchase return account           To Purchase account   (Being- purchase return to Eshna wrongly recorded as Goods purchased, now rectified)	Dr		13,150	6,575 6,575

********

PROBLEMS  AND  ANSWERS

 

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

Basic Problem: 6

Purchase and sales return

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

(a) Returned inward of Rs 2,145 were wrongly recorded into purchase account.

(b) Rs 7,654 being purchase returns to Eliza was posted to the purchase book.

(c) Sales return from BC Traders of Rs 15,257 was recorded as sales account

(d) Returned from customers Rs 7,384 recorded as return to supplier

Required: Rectified journal entries

***********

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