ACCOUNTING income statement formut (4)
ACCOUNTING ENTRIES
Rectification of Error
Q1. Rectified the following simple errors
1. Paid Rs200 for the purchase of a furniture posted to purchase account.
2. Paid Rs150 for the installation of machinery debited to wages account.
3. An amount of Rs 100 received from Mr. Ali was credited to the Mr. Ahmed.
4. A purchase of goods from Smith Rs 500 has been wrongly debited to Furniture Account.
5. A sum of Rs 200 drawn by the proprietor was debited to travelling expenses.
6. Sales return from Ali, totaling Rs 150 has not been entered in the return inwards book at all.
7. Machinery bought Rs 100, posted as purchases.
8. Carriage on machinery Rs 100 has been debited to carriage account.
9. Repair to car Rs 299 have been debited to car account.
10. An amount of Rs 200 received on account of commission was credited to interest account.
Date
1.
2.
3.
4.
5.
6.
7.
8.
Details/particulars
Ali
Suspense
(Ali account was overcast)
Suspense
Sale
(sale book was under cast)
Suspense
Rent Receivable
(A credit balance was 755 and 570 shown)
Sarwar
Suspense
(sale to sarwar)
Cash
Suspense
(balance of petty cash in hand)
Rehman
Suspense
(debit balance in Rehman)
Sales
Suspense
(sales book was overcast)
Discount
Suspense
(debit side of the cash book was under-added)
L/F
Dr.
Amounts
200
Cr.
Amounts
200
500
500
185
185
550
550
300
300
370
370
200
200
50
50
Q2. Rectified the following simple errors
1.
2.
3.
4.
5.
6.
7.
8.
The total of the credit side of Ali account was over cast by Rs 200
The sales book was under cast by Rs 500
A credit balance of Rs 755 of Rent receivable was shown Rs 570
Sale to Serwer of Rs 550 was not posted
The balance of petty cash in hand of Rs 150 was placed on the credit side of trial balance
A debit balance of Rs 370 in Rehman was omitted from the balance
Sales book was overcast Rs 200
The discount column on the debit side of the cash book was under-added by Rs 50
Dr.
Cr.
L/F
Date
Details/particulars
Amounts Amount
s
1.
Furniture
200
Purchase
200
(purchase on furniture posted to purchase A/c)
2.
3.
4.
Machinery
Wages
(machinery debited to wages account)
Ahmed
Ali
(amount received from Ali to Ahmad)
Purchase
Furniture
150
Sales Return
Ali
Machinery
Purchase
150
Machinery
Carriage
100
150
100
100
500
500
(purchase goods was wrongly debited to furniture A/c)
5.
6.
150
100
100
(machinery bought and posted as purchase)
7.
(carriage on machinery debited to carriage A/c)
100
Q3. Rectified the following simple errors
1. Machinery sold for Rs 10,000 has been posted to Sales account.
2. Rs 5,000 withdrawn by the proprietor for his personal use have been debited to trade Expenses
account.
3. Cost of repair Rs 500 has been charged to Machinery account.
4. Rs 3,900 received from Saleem have been posted to Waseem account.
5. Purchase of goods from Arshad & Co Rs 4,000 was omitted to be recorded in books.
6. Rs 9,500 paid to Nazir have been wrongly debited to Kabir account.
Date
1.
Details/particulars
Sales
L/F
Dr.
Amounts
10,000
Machinery
10,000
(machinery posted has been posted to sales A/c)
2.
3.
Drawing
Trade Expense
(trade to Suspense)
Repair
Machinery
Cr.
Amounts
5,000
5,000
500
500
(cost of repair has been charged to machinery A/c)
4.
5.
6.
Waseem
Saleem
Purchase
Arshad & Co.
(Purchase goods from Arshad & Co.)
Nazir
Kabir
(paid to nazir have been wrongly debited to kabir)
3,900
3,900
4,000
4,000
9,500
9,500
Q4. Rectified the following simple errors
1.
2.
3.
4.
5.
6.
Legal expenses Rs 3,000 paid to lawyer have been wrongly debited to his personal account.
A bill receivable for Rs 2,000 was passed though bill payable book the bill was given by Ali.
Trade expense of Rs 180 posted in the ledger as Rs 810.
A sale of Rs 3,000 to a was wrongly debited to the account B.
Sales book was overcast by Rs 3,000.
Total of the sales book Rs 54540 was posted to the sales account as Rs 55440.
Date
1.
Details/particulars
Legal Expenses
Lawyer Personal
L/F
Dr.
Amounts
3,000
Cr.
Amounts
3,000
(legal expenses wrongly debited to personal A/c)
2.
3.
4.
5.
6.
Bill Receivable
Bill Payable
Ali
(B/R and B/P is given by Ali)
Suspense
Trade Expense
(trade expense posted in ledger)
A
B
(A was wrongly debited to B Account)
Sales
Suspense
(sales book was overcast)
Sales
Suspense
(total of the sales was posted to the sales A/c)
2,000
2,000
4,000
630
630
3,000
3,000
3,000
3,000
900
900
Q5. Rectified the following simple errors
1.
2.
3.
4.
5.
An amount of Rs 900 paid for installation of machinery was debited to the wages account.
Salaries paid Rs 950 were debited to the salaries account as Rs 590.
Goods sold to Ali Rs 9,000 were debited to Alia account.
A bill of Rs 2,000 paid for owner’s personal use was wrongly debited to Trade expense account.
Rs 300 received from Ali whose account had already been written off as bad debts were credited
to his account.
6. Goods purchased for Rs 4,200 from Ali recorded in to sales book.
Date
1.
2.
Details/particulars
Machinery
Wages
(machinery was debited to wages account)
Salary
Suspense
L/F
Dr.
Amounts
900
900
360
360
(salaries were debited to the salaries account)
3.
4.
Ali
Alia
(goods sold to Ali were debited to alia A/c)
Drawing
Trade Expense
9,000
9,000
2,000
2,000
(personal use was wrongly debited to trade expense A/c)
5.
6.
Ali
Bad Debts Recovered
(bad debts A/c to Ali A/c)
Purchase
Sales
Ali
(purchase goods from Ali into sales book)
Cr.
Amounts
300
300
4,200
4,200
8,400
Q6. Rectified the following simple errors
1.
2.
3.
4.
5.
A purchase of Rs 10,000 from Akram was wrongly passed through the sales book.
A purchase of Rs 4,800 from Serwer was wrongly passed through the sales return book.
A sale of Rs 8,000 to Babar was wrongly passed through the sales return book.
A sale of Rs 12,000 to Hafeez was wrongly passed through the purchase book.
A sale of Rs 6,400 to Liaqat was wrongly passed through the purchase return book.
Date
1.
2.
3.
4.
Details/particulars
Purchase
Sales
Akram
(purchase & sales goods to Akram)
Purchase
Sales Return
Serwer
(purchase & sales return to Serwer)
Babar
Sales
Sales Return
(sales & sales return to Babar)
Hafeez
Purchase
Sales
(purchase & sales to Hafeez)
L/
F
Dr.
Amounts
10,000
10,000
Cr.
Amounts
20,000
4,800
4,800
9,600
16,000
8,000
8,000
24,000
12,000
12,000
Q7. Rectified the following simple errors
1. A sale of Rs 496 to Ashraf was entered in the sales book as Rs 694. Ashraf account was however
debited, with Rs 964.
2. A bill received from Salman & Co. for repair done to furniture Rs 200 and furniture purchased for
Rs 2,000 was wrongly entered in the purchase book.
3. An item of Rs 4,000 relating to prepaid rent was omitted to be brought forward.
4. Received a final dividend of Rs 400 from Anwar whose account had previously been written off
as bad debts, was credited to his newly opened account.
5. An item of purchase of Rs 1510 was entered in the purchase book at Rs 150 and posted to the
supplier’s account Rs 510.
6. A sale return of Rs 1,000 was not passed through the sale returns book, through goods were duly
taken into the stock.
Date
1.
2.
3.
4.
Details/particulars
Sales Account
Suspense Account
Ashraf
(sales, suspense to ashraf)
Repair Account
Furniture Account
Purchase Account
(repair, furniture to purchase A/c)
Prepaid Rent Account
Suspense Account
(item relating to prepaid rent)
Anwar
Bad Debts Account
L/
F
Dr.
Amounts
198
270
468
200
2,000
2,200
4,000
4,000
400
400
(bad debts was opening a new account to Anwar)
5.
6.
Purchase Account
Supplier Account
Suspense Account
(purchase to supplier and suspense A/c)
Sales Return Account
Debtor Personal Account
(sales Return to debtor personal A/c)
Cr.
Amounts
1,360
1,000
360
1,000
1,000
Q8. Rectified the following simple errors
1. A bill of goods Rs 10,000 for credit sales to Zahid has been recorded in the sales book.
2. Goods purchased from Khalid Bros. for Rs 15,000 have been entered in the purchase book as Rs
51,000.
3. An amount of Rs 200 spent on the purchase of stationary has been debited to salaries account.
4. A sum of Rs 5,000 received from Asif was not entered in the cash book.
5. The sales return book for December has been cast Rs 5,000 short.
6. While carrying forward the total of the sales book from page no 14 to page no 15, the amount
was written as Rs 157786 instead of Rs 175586.
Date
1.
2.
3.
Details/particulars
Zahid
Sales
(sahid does not recorded in the sales book)
Khalid
Purchase
(purchase goods from Khalid)
Stationary
Sales
L/
F
Dr.
Amounts
10,000
Cr.
Amounts
10,000
36,000
36,000
200
200
(stationary has been debited to the salary account)
4.
5.
6.
Cash
Asif
(Asif was not enter in the cash book)
Sales Return
Suspense
(the sales return has been cast)
Suspense
Sales
(sales book has been overcast)
5,000
5,000
5,000
5,000
17,800
17,800
Q9. Rectified the following simple errors
1. Table purchased costing Rs 650 had been through the purchase day book.
2. Rs 8,000 paid for wages to workmen for making show cases had been charged to the wages
account.
3. A sale of Rs 18,000 has been passed through the purchase book. The customer’s account has,
however been correctly debited.
4. A sale of Rs 4,500 to Kashif Bros. was credited to their account.
5. Rs 30,000 paid for the purchase of a Motor Cycle for a partner, had been charged to the
miscellaneous expenses account.
6. A purchase of Rs 696 had been debited to supplier’s account as Rs 632. The supplier was Sarwer.
Date
1.
2.
3.
4.
5.
6.
Details/particulars
Furniture
Purchase
(purchase furniture)
Furniture
Wages
(purchase furniture and wages)
Suspense
Purchase
Sales
(purchase and sales of goods)
Kashif
Suspense
(sales goods of Kashif)
Drawing
Miscellaneous Expenses
(purchase of a Motor Cycle for a partner)
Suspense
Serwer
(purchase goods for Serwer)
L/
F
Dr.
Amounts
650
Cr.
Amounts
650
8,000
8,000
36,000
18,000
18,000
9,000
9,000
30,000
30,000
1,328
1,328
Q10. Rectified the following simple errors
Date
1.
L/
F
Details/particulars
Azhar & Co.
Suspense
(Azhar & Co. to suspense)
Suspense
Interest
(suspense to interest)
Mukhtar
Purchase Return
Sales Return
(Mukhtar to purchase return and sales return)
Naeem
Suspense
(Naeem to suspense)
Furniture
Building
(furniture to building)
Suspense
Wages
(suspense to wages)
2.
3.
4.
5.
6.
Dr.
Amounts
2,000
Cr.
Amounts
2,000
2,400
2,400
6,000
3,000
3,000
360
360
5,000
5,000
8,000
8,000
Suspense Account
Date
2.
6.
Details
Interest
Wages
Amount
Rs.
2,400
8,000
10,400
Date
1.
4.
Details
Balance B/d
Azhar & Co.
Naeem
Amount
Rs.
8,040
2,000
360
10,400
Q11. Rectified the following simple errors
Date
1.
2.
3.
4.
5.
Details/particulars
Bad Debts
Anwar
Amjad
(Bad Debts to Anwar)
Drawing
Trade Expense
(Drawing to Trade Expense)
Arshad
Bad Debts Recovered
(Arshad to Bad Debts Recovered)
Saeed
Suspense
(Saeed to suspense)
Sales Return
Debtors Personal Account
(Sales Return to Debtors Personal Account)
L/
F
Dr.
Amounts
360
480
Cr.
Amounts
840
2,000
2,000
1,000
1,000
1,800
1,800
2,800
2,800
Rectification of Error
Q1. Rectified the following simple errors
1. Paid Rs200 for the purchase of a furniture posted to purchase account.
2. Paid Rs150 for the installation of machinery debited to wages account.
3. An amount of Rs 100 received from Mr. Ali was credited to the Mr. Ahmed.
4. A purchase of goods from Smith Rs 500 has been wrongly debited to Furniture Account.
5. A sum of Rs 200 drawn by the proprietor was debited to travelling expenses.
6. Sales return from Ali, totaling Rs 150 has not been entered in the return inwards book at all.
7. Machinery bought Rs 100, posted as purchases.
8. Carriage on machinery Rs 100 has been debited to carriage account.
9. Repair to car Rs 299 have been debited to car account.
10. An amount of Rs 200 received on account of commission was credited to interest account.
Date
1.
2.
3.
4.
5.
6.
7.
8.
Details/particulars
Ali
Suspense
(Ali account was overcast)
Suspense
Sale
(sale book was under cast)
Suspense
Rent Receivable
(A credit balance was 755 and 570 shown)
Sarwar
Suspense
(sale to sarwar)
Cash
Suspense
(balance of petty cash in hand)
Rehman
Suspense
(debit balance in Rehman)
Sales
Suspense
(sales book was overcast)
Discount
Suspense
(debit side of the cash book was under-added)
L/F
Dr.
Amounts
200
Cr.
Amounts
200
500
500
185
185
550
550
300
300
370
370
200
200
50
50
Q2. Rectified the following simple errors
1.
2.
3.
4.
5.
6.
7.
8.
The total of the credit side of Ali account was over cast by Rs 200
The sales book was under cast by Rs 500
A credit balance of Rs 755 of Rent receivable was shown Rs 570
Sale to Serwer of Rs 550 was not posted
The balance of petty cash in hand of Rs 150 was placed on the credit side of trial balance
A debit balance of Rs 370 in Rehman was omitted from the balance
Sales book was overcast Rs 200
The discount column on the debit side of the cash book was under-added by Rs 50
Dr.
Cr.
L/F
Date
Details/particulars
Amounts Amount
s
1.
Furniture
200
Purchase
200
(purchase on furniture posted to purchase A/c)
2.
3.
4.
Machinery
Wages
(machinery debited to wages account)
Ahmed
Ali
(amount received from Ali to Ahmad)
Purchase
Furniture
150
Sales Return
Ali
Machinery
Purchase
150
Machinery
Carriage
100
150
100
100
500
500
(purchase goods was wrongly debited to furniture A/c)
5.
6.
150
100
100
(machinery bought and posted as purchase)
7.
(carriage on machinery debited to carriage A/c)
100
Q3. Rectified the following simple errors
1. Machinery sold for Rs 10,000 has been posted to Sales account.
2. Rs 5,000 withdrawn by the proprietor for his personal use have been debited to trade Expenses
account.
3. Cost of repair Rs 500 has been charged to Machinery account.
4. Rs 3,900 received from Saleem have been posted to Waseem account.
5. Purchase of goods from Arshad & Co Rs 4,000 was omitted to be recorded in books.
6. Rs 9,500 paid to Nazir have been wrongly debited to Kabir account.
Date
1.
Details/particulars
Sales
L/F
Dr.
Amounts
10,000
Machinery
10,000
(machinery posted has been posted to sales A/c)
2.
3.
Drawing
Trade Expense
(trade to Suspense)
Repair
Machinery
Cr.
Amounts
5,000
5,000
500
500
(cost of repair has been charged to machinery A/c)
4.
5.
6.
Waseem
Saleem
Purchase
Arshad & Co.
(Purchase goods from Arshad & Co.)
Nazir
Kabir
(paid to nazir have been wrongly debited to kabir)
3,900
3,900
4,000
4,000
9,500
9,500
Q4. Rectified the following simple errors
1.
2.
3.
4.
5.
6.
Legal expenses Rs 3,000 paid to lawyer have been wrongly debited to his personal account.
A bill receivable for Rs 2,000 was passed though bill payable book the bill was given by Ali.
Trade expense of Rs 180 posted in the ledger as Rs 810.
A sale of Rs 3,000 to a was wrongly debited to the account B.
Sales book was overcast by Rs 3,000.
Total of the sales book Rs 54540 was posted to the sales account as Rs 55440.
Date
1.
Details/particulars
Legal Expenses
Lawyer Personal
L/F
Dr.
Amounts
3,000
Cr.
Amounts
3,000
(legal expenses wrongly debited to personal A/c)
2.
3.
4.
5.
6.
Bill Receivable
Bill Payable
Ali
(B/R and B/P is given by Ali)
Suspense
Trade Expense
(trade expense posted in ledger)
A
B
(A was wrongly debited to B Account)
Sales
Suspense
(sales book was overcast)
Sales
Suspense
(total of the sales was posted to the sales A/c)
2,000
2,000
4,000
630
630
3,000
3,000
3,000
3,000
900
900
Q5. Rectified the following simple errors
1.
2.
3.
4.
5.
An amount of Rs 900 paid for installation of machinery was debited to the wages account.
Salaries paid Rs 950 were debited to the salaries account as Rs 590.
Goods sold to Ali Rs 9,000 were debited to Alia account.
A bill of Rs 2,000 paid for owner’s personal use was wrongly debited to Trade expense account.
Rs 300 received from Ali whose account had already been written off as bad debts were credited
to his account.
6. Goods purchased for Rs 4,200 from Ali recorded in to sales book.
Date
1.
2.
Details/particulars
Machinery
Wages
(machinery was debited to wages account)
Salary
Suspense
L/F
Dr.
Amounts
900
900
360
360
(salaries were debited to the salaries account)
3.
4.
Ali
Alia
(goods sold to Ali were debited to alia A/c)
Drawing
Trade Expense
9,000
9,000
2,000
2,000
(personal use was wrongly debited to trade expense A/c)
5.
6.
Ali
Bad Debts Recovered
(bad debts A/c to Ali A/c)
Purchase
Sales
Ali
(purchase goods from Ali into sales book)
Cr.
Amounts
300
300
4,200
4,200
8,400
Q6. Rectified the following simple errors
1.
2.
3.
4.
5.
A purchase of Rs 10,000 from Akram was wrongly passed through the sales book.
A purchase of Rs 4,800 from Serwer was wrongly passed through the sales return book.
A sale of Rs 8,000 to Babar was wrongly passed through the sales return book.
A sale of Rs 12,000 to Hafeez was wrongly passed through the purchase book.
A sale of Rs 6,400 to Liaqat was wrongly passed through the purchase return book.
Date
1.
2.
3.
4.
Details/particulars
Purchase
Sales
Akram
(purchase & sales goods to Akram)
Purchase
Sales Return
Serwer
(purchase & sales return to Serwer)
Babar
Sales
Sales Return
(sales & sales return to Babar)
Hafeez
Purchase
Sales
(purchase & sales to Hafeez)
L/
F
Dr.
Amounts
10,000
10,000
Cr.
Amounts
20,000
4,800
4,800
9,600
16,000
8,000
8,000
24,000
12,000
12,000
Q7. Rectified the following simple errors
1. A sale of Rs 496 to Ashraf was entered in the sales book as Rs 694. Ashraf account was however
debited, with Rs 964.
2. A bill received from Salman & Co. for repair done to furniture Rs 200 and furniture purchased for
Rs 2,000 was wrongly entered in the purchase book.
3. An item of Rs 4,000 relating to prepaid rent was omitted to be brought forward.
4. Received a final dividend of Rs 400 from Anwar whose account had previously been written off
as bad debts, was credited to his newly opened account.
5. An item of purchase of Rs 1510 was entered in the purchase book at Rs 150 and posted to the
supplier’s account Rs 510.
6. A sale return of Rs 1,000 was not passed through the sale returns book, through goods were duly
taken into the stock.
Date
1.
2.
3.
4.
Details/particulars
Sales Account
Suspense Account
Ashraf
(sales, suspense to ashraf)
Repair Account
Furniture Account
Purchase Account
(repair, furniture to purchase A/c)
Prepaid Rent Account
Suspense Account
(item relating to prepaid rent)
Anwar
Bad Debts Account
L/
F
Dr.
Amounts
198
270
468
200
2,000
2,200
4,000
4,000
400
400
(bad debts was opening a new account to Anwar)
5.
6.
Purchase Account
Supplier Account
Suspense Account
(purchase to supplier and suspense A/c)
Sales Return Account
Debtor Personal Account
(sales Return to debtor personal A/c)
Cr.
Amounts
1,360
1,000
360
1,000
1,000
Q8. Rectified the following simple errors
1. A bill of goods Rs 10,000 for credit sales to Zahid has been recorded in the sales book.
2. Goods purchased from Khalid Bros. for Rs 15,000 have been entered in the purchase book as Rs
51,000.
3. An amount of Rs 200 spent on the purchase of stationary has been debited to salaries account.
4. A sum of Rs 5,000 received from Asif was not entered in the cash book.
5. The sales return book for December has been cast Rs 5,000 short.
6. While carrying forward the total of the sales book from page no 14 to page no 15, the amount
was written as Rs 157786 instead of Rs 175586.
Date
1.
2.
3.
Details/particulars
Zahid
Sales
(sahid does not recorded in the sales book)
Khalid
Purchase
(purchase goods from Khalid)
Stationary
Sales
L/
F
Dr.
Amounts
10,000
Cr.
Amounts
10,000
36,000
36,000
200
200
(stationary has been debited to the salary account)
4.
5.
6.
Cash
Asif
(Asif was not enter in the cash book)
Sales Return
Suspense
(the sales return has been cast)
Suspense
Sales
(sales book has been overcast)
5,000
5,000
5,000
5,000
17,800
17,800
Q9. Rectified the following simple errors
1. Table purchased costing Rs 650 had been through the purchase day book.
2. Rs 8,000 paid for wages to workmen for making show cases had been charged to the wages
account.
3. A sale of Rs 18,000 has been passed through the purchase book. The customer’s account has,
however been correctly debited.
4. A sale of Rs 4,500 to Kashif Bros. was credited to their account.
5. Rs 30,000 paid for the purchase of a Motor Cycle for a partner, had been charged to the
miscellaneous expenses account.
6. A purchase of Rs 696 had been debited to supplier’s account as Rs 632. The supplier was Sarwer.
Date
1.
2.
3.
4.
5.
6.
Details/particulars
Furniture
Purchase
(purchase furniture)
Furniture
Wages
(purchase furniture and wages)
Suspense
Purchase
Sales
(purchase and sales of goods)
Kashif
Suspense
(sales goods of Kashif)
Drawing
Miscellaneous Expenses
(purchase of a Motor Cycle for a partner)
Suspense
Serwer
(purchase goods for Serwer)
L/
F
Dr.
Amounts
650
Cr.
Amounts
650
8,000
8,000
36,000
18,000
18,000
9,000
9,000
30,000
30,000
1,328
1,328
Q10. Rectified the following simple errors
Date
1.
L/
F
Details/particulars
Azhar & Co.
Suspense
(Azhar & Co. to suspense)
Suspense
Interest
(suspense to interest)
Mukhtar
Purchase Return
Sales Return
(Mukhtar to purchase return and sales return)
Naeem
Suspense
(Naeem to suspense)
Furniture
Building
(furniture to building)
Suspense
Wages
(suspense to wages)
2.
3.
4.
5.
6.
Dr.
Amounts
2,000
Cr.
Amounts
2,000
2,400
2,400
6,000
3,000
3,000
360
360
5,000
5,000
8,000
8,000
Suspense Account
Date
2.
6.
Details
Interest
Wages
Amount
Rs.
2,400
8,000
10,400
Date
1.
4.
Details
Balance B/d
Azhar & Co.
Naeem
Amount
Rs.
8,040
2,000
360
10,400
Q11. Rectified the following simple errors
Date
1.
2.
3.
4.
5.
Details/particulars
Bad Debts
Anwar
Amjad
(Bad Debts to Anwar)
Drawing
Trade Expense
(Drawing to Trade Expense)
Arshad
Bad Debts Recovered
(Arshad to Bad Debts Recovered)
Saeed
Suspense
(Saeed to suspense)
Sales Return
Debtors Personal Account
(Sales Return to Debtors Personal Account)
L/
F
Dr.
Amounts
360
480
Cr.
Amounts
840
2,000
2,000
1,000
1,000
1,800
1,800
2,800
2,800