Explain and tell the answers of these entries1)amount payable to gobind ram for repairs done to radio rs 150 and radio supplied rs 950 were entered in the purchase return book2)credit purchases from m and co rs 6000 were recorded in sales book as rs 2000 and posted there from to the credit of m and co rs 1000
Dear Student, the solution to your query is here.
||Repairs A/c||Dr.||150||For Repairs and purchase of Radio, Purchase Return were wrongly credited, therefore to rectify, Purchase Return Account is debited which was credited earlier and Repairs and Radio is debited which was actual expense by crediting Gobind Ram, who is the actual creditor)|
|Purchase Return A/c||Dr.||1,100|
|To Gobind Ram||1,100|
|To Suspense A/c||1,100|
|(Repairs and purchase of radio from Gobind Ram recorded in the Purchase Return book, now rectified)|
||Sales A/c||Dr.||2,000||Sales were wrongly credited instead of purchases, therefore to rectify, sales were debited along with the purchases.
Moreover, M & co. was credited with Rs 1,000 instead of Rs 6,000, therefore, to rectify, it is further credited with Rs 5,000 and the balance is transferred to Suspense Account.
|To M & Co.||5,000|
|To Suspense A/c||3,000|
|(Credit purchases of Rs 6,000 from M & co. recorded in Sales book as Rs 2,000 and credited to the M & Co. as Rs 1,000, now rectified)|