438-Assignment 2 Solution 2022-Autuman 2022-Q No 5-AIOU
438 Assignment 2 Solution 2022-Autuman 2022-Q No 5-AIOU
Questions
Rectify the following errors by passing the necessary journal entries.
a. The sales book has been under-cast by Rs. 8,000.
b. A cheque drawn for wages for Rs. 1, 500 was wrongly posted to wages A/c as Rs. 1, 400.
c. Furniture purchased for Rs. 1,040 has been debited to purchase A/c as Rs. 1,640.
d. Rs. 550 received from Rahim debited to his account.
e. Discount received Rs. 200 was posted to the wrong side of Discount A/C
f. Rs. 7,000 paid in cash for a typewriter was charged to office expenses account
g. Stationary purchased for Rs. 890 but debited to stationary A/c as Rs. 980.
Questions
Rectify the following errors by passing the necessary journal entries.
a. The sales book has been under-cast by Rs. 8,000.
b. A cheque drawn for wages for Rs. 1, 500 was wrongly posted to wages A/c as Rs. 1, 400.
c. Furniture purchased for Rs. 1,040 has been debited to purchase A/c as Rs. 1,640.
d. Rs. 550 received from Rahim debited to his account.
e. Discount received Rs. 200 was posted to the wrong side of Discount A/C
f. Rs. 7,000 paid in cash for a typewriter was charged to office expenses account
g. Stationary purchased for Rs. 890 but debited to stationary A/c as Rs. 980.
Category
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LearningTranscript
00:00bismillahirrahmanirrahim assalamu alaikum dear students and viewers welcome to my youtube channel
00:05in today's video we are going to solve the question number five of assignment number
00:10two of subject 438 which is labeled as principle of appointing and related to
00:16b.a.b.com of a.i.o.u it is also related to the semester autumn 2022 so let's start reading the
00:25questions and their related tasks and then we will going to solve the every task associated
00:30with the question number five so rectify the following errors by passing the necessary
00:36general entries so uh they are one two three four five six seven seven transactions which
00:45have some errors regarding single side or single account or double side or double account or two
00:52accounts so you have to identify that one and then pass the correct one entry to rectify the
01:00account status so let's start reading the first transaction the sales book has been under cost
01:06by rupees eight eight thousand as it is clear that only the sales book is under cost under cost
01:14is below below from the actual value and the actual value let's suppose the actual value is
01:22ten thousand but it has been and the sales book has been reported under cost by means less eight
01:30thousand so it means in the sales book we have two thousand rupees but we have to increase the
01:37share size by rupees eight thousand to to equate with the actual amount of rupees eight thousand
01:43i hope you understand the word under cost the second transaction is a check drawn for wages
01:49for rupees one thousand five hundred was wrongly posted to wages account as rupees one thousand
01:56four hundred again this is transaction is related to or this error is related to one-sided one
02:02account error because only one account is involved here which is account and actual
02:09the one thousand five hundred which has been paid and to the workers but the account is
02:15debited by the less amount which is one thousand four hundred and the last amount is equal to
02:23hundred rupees so you need to increase the expenses by the rupees 100 by debiting the
02:30wages account with the mod amount of rupees 100 so furniture purchase for rupees 1040 has been
02:36debited to purchase account as rupees one thousand six hundred four one thousand six hundred forty
02:43so look at this transaction let's make analysis of this one there are three accounts involve this
02:50transaction so two accounts are directly involved and which has been which has been introduced in
02:57the solution first account is furniture which is totally absent from the from the book of records
03:04because its amount is wrongly debited to the purchase account so in first step we are going
03:11to eliminate this account this wrong debited value from the purchase account and transfer it to the
03:18right account furniture purchase account and the second issue is that the
03:23excess amount has been debited to the account so what is the issue is here first we have to
03:31uh carried the purchase account with the same amount but debited the furniture account with
03:37this amount which is less than one thousand six hundred forty so what about the difference
03:42between these two amount six hundred it will be handed through the suspense account we don't know
03:49the other sides of the error of error or other side of the account of the other transactions
03:58the rupees 550 from rahim debited his account it means uh him is our account receivable account we
04:08have sell something to him on credit basis and later it will give us money in form of cash i
04:15check so we need to carry this account but unfortunately or by mistake we have debited
04:21this account it means we have increased this liability by rather reducing its liability by
04:28rupees 550 so again this is a single account side error discount received rupees 200 was posted to
04:38the wrong side of the discount account so wrong side let's first understand what is this account
04:45if we give discount it is expense and it will be occupied the debit side of the account if we
04:51receive discount it will be income and it will be occupied the credit side of the account but here
04:58we receive discount of rupees 200 it means it is income of the business so it should be posted or
05:05placed on the credit side but wrong side means if we have placed on the debit side of the discount
05:10account so again only one single account or error is involved in this transaction and we need to
05:17correct this one um by first and we correct the entry by 200 bond then we will pass the
05:26increase the our credit side by this 200 amount so let's move to the
05:32next transaction rupees 7000 is paid in cash for a typewriter was charged to office expense account
05:46the business has purchased the typewriter which is an asset of rupees 7000 but by mistake it has
05:52been posted to the office expense account which is an expense account in nature so two accounts
05:59are involved here so we simply uh credit this account and debit typewriter account
06:05stationary purchase for rupees 890 but debited to stationary account as rupees 980 so uh account
06:13is debited correctly but uh with our cost amount because our uh stationary account has been
06:21increased by the amount of rupees 90 so we have to be credited this or reduce this account so
06:28again in this transaction single account is involved or type of a single account error is
06:35available there let's move to the solution of this account so uh this is about and the
06:42sales book has been under cost by rupees 8000 so this single side or one side and wage account
06:48sorry sale account by mistake i have written the sales account sales account so we increase
06:57the sales account but we don't know the other side of the transaction only one single account
07:03is involved so we have to be introduced expense account to rectify all this kind of error which
07:09have involved only single account so we need to increase the credit side of sales account
07:16by the rupees 8000 so the expense account is debited and sales account is credited by 8000
07:24as a result our account sales account will be increased by the 8000 and the issue of under
07:30cost will be solved second transaction a check drawn for wages for rupees
07:351500 was wrongly posted to the wages account as it is 1400 so we need to increase the wages count by
07:44100 again single account is involved we introduce a suspense account but look at this
07:50here's a special called the debit and here's a special kind of credit so
07:55the special can't move as per the nature of the transaction sometimes it is debited sometimes it
08:01is credited so at the end it will be automatically be balanced if there's some difference we'll keep
08:07it as it is and we will again go to the records and get the details inside to trace out this
08:15fault or this error so we we need to increase the wages expense account and double side with 100 so
08:24we make this debit by 100 and suspense about 100 now the transaction number c or third furniture
08:33purchase at rupees 1040 has been debited to purchase account as rupees 1640 look at this
08:41it is clear from the statement that there are two account directly involved which is furniture
08:47account and and the other is purchases account but we have to correct the purchasing account
08:55and post the correct amount to the furniture account but there's a difference of 600 degrees
09:00how do we rectify a settle this amount by using the suspense account we are going to
09:06handle this 600 code now we look at the entry a general entry of the this transactions
09:14furniture account 1040 the correct amount the special account which is contained the difference
09:21of the two amount 600 and we are going to here is the debit it so which is the point is always
09:27debited but we need to reduce it so we are going to credit this account by the 1640 i hope you
09:35will understand this here now the transaction number d rupees 550 is free from him debited to
09:42his account so suspense account again second account is involved to rahim account by 1100
09:48why i am going to be double this amount the question is here that because 5 first 550 is
09:55balanced with this amount it means first 550 is cancel the effect of this 550 and the second 550
10:02will reduce the liability of the rahim account uh i will make a little bit mistake of spelling
10:11here so please correct it look at this i am going to make a uh him account here as part of this
10:17transactions debit inside and credit side look at on 10th january we have passed this entry on
10:25debit side which is wrong because we have received cash from the rahim so it should be placed on the
10:31credit side but we wrongly posted on in and upper side it means it will increase the liability of
10:37the rahim actually we have to reduce the liability of the rahim by the 550 so first 1150 if you
10:45subtract 500 550 550 from 1100 you will get 550 on the credit side it means now the him account
10:57is correct and its liability has been reduced by 550 now discount received rupees 200 was posted
11:04to the wrong side of the discount account discount account is that one which has two kind of
11:10transaction discount received and discount allowed if you are discount allowed it will be occupied
11:17the debit side if you receive discount is there it will be go to the credit side of the discount
11:22discount received is always income of the business and discount allowed is always the expense of the
11:28business so here is this income so but it is posted under the heading of debit side so we
11:36have to correct this one again single side discount received is single side error for
11:42only discount account is involved we need to correct the debit side by posting it into the
11:50credit side the expense account again we are going to make it double first entry is going to be
11:56correct correct 200 and the rest 200 is going to be correct the other side of the transaction so
12:03discount account so first 200 is cancelled by the 200 and the second 200 is increase our discount
12:12income transaction f rupees 7000 paid in cash for typewriter was charged to office expense
12:20account again and two account directly involved here so we need to correct office expense account
12:27by editing it and introduce the typewriter account which is going to make it correct typewriter
12:33account 7000 to office expense i just written here expense you can add it office but here
12:40to make it correct account so with 7000 last one stationary purchase for rupees 890 but
12:47debited to stationary account uh rupees 980 now the issue is that here uh posting of transaction
12:54is correct but uh but the correction uh but the incorrectness in this transaction is that it has
13:02been overstated by the rupees 90 so we need to correct it how here we credited this account by
13:10nature it is a debit account but we have increased this stationary account by with the amount of
13:15rupees 90 so we we want to reduce this so in correct transactions we are going to make expense
13:22upon debit and to stationary account rupees 90 as a result our stationary account becomes correct
13:28i hope you understand this solution if you have any query or if you found any mistake please
13:35mention in comment section if you want to share your opinion with me regarding any transaction
13:41of this question we are here to discuss only to make it uh improved solution thanks for watching