value of ` returned by Bhuvana were included in stock, but no entry was made in the books. (b) Sale of goods to Mani on credit for ` has been wrongly entered in the sales book as ` . (c) A cheque of ` received from Sandhiya was dishonoured and debited to allowances account. (d) A sum of ` drawn by the proprietor for personal use was debited to wages account.
Solution Rectifying entries L.F. Dr. ` Cr. ` a Sales Returns A/c To Bhuvana A/c (Goods returned by Bhuvana not entered in the books, now rectified) b Sales A/c To Mani A/c (Goods sold to Mani for ` wrongly entered in the sales book as ` , now rectified) c Sandhiya A/c To Allowances A/c (Dishonour of cheque received from Sandhiya wrongly debited to allowances A/c , now rectified) d Drawings A/c To Wages A/c (Cash drawn by the proprietor for his personal use wrongly debited to wages account, now rectified) Note: Method of deriving the rectifying entries Wrong Entry Correct Entry Rectifying Entry a - - - Sales Returns A/c Dr.
To Bhuvana A/c Sales Returns A/c Dr. To Bhuvana A/c Accountancy b Mani A/c Dr. To Sales A/c Mani A/c Dr. To Sales A/c Sales A/c Dr.
To Mani A/c c Allowances A/c Dr. To Bank A/c Sandhiya A/c Dr. To Bank A/c Sandhiya A/c Dr. To Allowances A/c d Wages A/c Dr.
To Cash A/c Drawings A/c Dr. To Cash A/c Drawings A/c Dr. To Wages A/c (iii) Rectification of errors after preparing the trial balance but before preparing the final accounts (a) Rectification of one-sided errors after preparing the trial balance If there is disagreement of trial balance and if it is not possible immediately to locate errors, the accountant may place the difference to ‘suspense account’. After that, before the preparation of final