Accountancy Vol – I, , Kalyani Publishers, New Delhi. . Dalston L Cecil and Jenitra L Merwin, Financial Accounting, rd ed., , Learntech Press, Trichy. .
Fundamentals of Accounting, , The Institute of Chartered Accountants of India, New Delhi. Rameela, a class student, visited one of her relative’s furniture shop. She met the accountant of the shop. He was busy with preparing final accounts.
At that time, one of the staff approached the accountant with a list of errors found in ledger postings. Rameela asked the accountant, in a surprised tone, “Is it possible to rectify the errors before preparing the final accounts?” The accountant replied, “Yes, it is!”. Rameela was curious to analyse the errors. She found the following: • Furniture sold on credit to Siva and company for ` , was debited to Sam and company.
• Rent paid ` , , was debited to rent account as ` . • The total of purchase journal was undercast by ` , . • A sales invoice for ` , , completely omitted from the books. • Stationery bought for ` , was posted to purchases account.
Can you help Rameela to identify and rectify the errors? Accountancy