"an amount of rs 100 was recieved from D.DAS on 31st december,2012 but had been entered in cash book on4th jan 2013"rectify it????explain the entry???
"one item of purchase of rs 25 had been posted from purchase book to the ledger as rs 350"rectify it ???? explain plzzzz....
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
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(i) | Cash A/c | Dr |
| 100 |
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| To Suspense A/c |
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| 100 |
| (Cash Book under cast by Rs 100, now rectified) |
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(ii) | Suspense A/c | Dr |
| 325 |
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| To Purchase A/c |
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| 325 |
| (Purchase Book overcast by Rs 325, now rectified) |
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Explanation:
(i) Here, Cash Book is undercast by Rs 200. As amount received on Dec 31,2012 was recorded on Jan 4,2013. Therefore, by debiting Cash A/c (to record the omission on Dec 31,2012) and crediting Suspense A/c the error is rectified.
(ii) This is a case of over cast. Clearly, an item of Rs 25 is recorded as Rs 350 which means that the Purchase Book is overcast by Rs 325. Therefore, by crediting the Purchase A/c (to reduce its balance) and debiting the Suspense A/c the error is rectified.