Rectify the following journal entries :
A. Goods costing Rs.650 were sent to a customer on sale or return basis for Rs.750. The entry was made in the sales book but the customer has not informed regarding their acceptance by 31st Dec.2004.
B. Wages outstanding Rs.350 has not been taken into accont.
C. In.Dec.2004, he spent Rs.500 on constructing a cycle shed , which had been wrongly debited to repairs account.
D. Unexpired insurance Rs.200 had not been taken into account , while preparing profit and loss account.
On 1st december 2004, Rams profit and loss account showed a net profit of Rs. 6720.
Journal | |||||
Date | Particulars |
| L.F. | Debit Amount Rs | Credit Amount Rs |
A. | Stock A/c | Dr. |
| 650 |
|
| Capital A/c (Profit and Loss) | Dr. |
| 100 | |
| To Debtors A/c |
|
|
| 750 |
| (Goods sent on sale or approval basis was wrongly recorded as sales, now rectified) |
|
|
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|
|
|
B. | Wages A/c | Dr. |
| 350 |
|
| To Wages Outstanding A/c |
|
|
| 350 |
| (Wages outstanding was unrecorded, now recorded) |
|
|
|
|
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|
|
|
C. | Building A/c | Dr. |
| 500 |
|
| To Repairs A/c |
|
|
| 500 |
| (Spent Rs 500 on construction was recorded in Repairs Account, now rectified.) |
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D. | Prepaid Insurance A/c | Dr. |
| 200 |
|
| To Insurance A/c |
|
|
| 200 |
| (Insurance prepaid Rs 200 was not adjusted, now adjusted.) |
|
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Profit and Loss Adjustment Account | |||
Dr. | Cr. | ||
Particulars | Amount Rs | Particulars | Amount Rs |
Debtors | 100 | Profit and Loss (Net Profit) | 6,720 |
Wages | 350 | Repair | 500 |
Net Profit (Balancing Fig.) |
6,970 | Insurance | 200 |
(after adjustment) |
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|
|
|
|
|
|
| 7,420 |
| 7,420 |
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