Q.Rectify the following errors.

A) Purchase of chair from Happy Traders for Rs.35 has been entered in the Purchases Book as Rs.53

Can you please tell me how to rectify it?! Do I have to make a suspense account?Does this sentence mean that only in the purchases book the error has been made?

Raj, for this error,  Furniture A/c is debited with Rs 35 (to give effect to earlier omission), Happy Traders are debited with Rs 18 (as they should have been credited with Rs 35, however they are credited with Rs 53 so the account of Happy Traders is overcast by Rs 18. Now to rectify the error they are debited with Rs 18) and Purchase A/c is credited with Rs 53 (to cancel the effect of wrongly debiting it).
Journal Entry
Date Particulars L.F. Debit 
Rs )
Rs )
  Correct Entry:        
  Furniture A/c Dr.   35  
    To Happy Traders       35
  (Car purchased from Happy Traders)        
  Wrong Entry:        
  Purchases A/c Dr.   53  
    To Happy Traders       53
  (Car purchased was wrongly recorded in the Purchase Book)        
  Rectifying Entry:        
  Furniture A/c Dr.   35  
  Happy Traders Dr.   18  
    To Purchases A/c       53
  (Car purchased was wrongly recorded in the purchase book, now rectified)        

We advise you to post your question every day within a range of 1 to 2 from each subject on per day basis. 
This enables us to provide answers to your queries regularly without compromising on the answers to our other users. Hope you understand. 
​Keep Posting!!

  • 4
What are you looking for?