Rectify the following:
i)A sum of Rs.625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
Please explain how to do it.Please give the wrong entry,the correct entry,and the rectified entry.Thanks!
Hi Raj
Correct Entry and correct posting of the given transaction:
Wrong posting
Rectifying Journal entry
It is assumed that amount of depreciation has been correctly posted to the Fixtures Account, so, it becomes one-sided error. Therefore, we will record depreciation now by debiting depreciation account and crediting suspense account.
However, we advise you to post your question every day within a range of 1 to 2 from each subject on per day basis.
Keep Posting!!
Correct Entry and correct posting of the given transaction:
Depreciation A/c | Dr. | 625 | ||
To Fixtures A/c | 625 | |||
(Depreciation written off on fixtures) |
Depreciation Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | J.F. | Amount (Rs) |
Date | Particulars | J.F. | Amount (Rs) |
||
Fixtures | 625 | ||||||||
Wrong posting
Depreciation Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | J.F. | Amount (Rs) |
Date | Particulars | J.F. | Amount (Rs) |
||
Not Posted | |||||||||
Rectifying Journal entry
Depreciation A/c | Dr. | 625 | ||
To Suspense A/c | 625 | |||
(Depreciation written off on fixtures, now recorded) |
It is assumed that amount of depreciation has been correctly posted to the Fixtures Account, so, it becomes one-sided error. Therefore, we will record depreciation now by debiting depreciation account and crediting suspense account.
However, 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!!