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Assignment Rectification of Errors

The document provides instructions on how to rectify various errors detected before and after preparing trial balances and final accounts. Errors include undercasting or overcasting of sales, purchases, returns, and other ledger accounts, as well as incorrect postings between accounts. The errors would need to be rectified through journal entries that debit or credit the correct accounts to adjust for the mistakes and ensure accurate financial reporting.

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470 views1 page

Assignment Rectification of Errors

The document provides instructions on how to rectify various errors detected before and after preparing trial balances and final accounts. Errors include undercasting or overcasting of sales, purchases, returns, and other ledger accounts, as well as incorrect postings between accounts. The errors would need to be rectified through journal entries that debit or credit the correct accounts to adjust for the mistakes and ensure accurate financial reporting.

Uploaded by

Nida Fatima
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Intermediate Accounting 201 Assignment

Rectification of Errors
How would you rectify the following errors detected before preparing the trial
balance?
1. Sales returns book has been undercast by Rs. 500
2. A payment of Rs. 4000 on account of rent has been posted twice to rent Account.
3. A sum of Rs. 2000 received from Nasir has not been posted to his account.
4. A sum of Rs. 750 debited to Imran Account as Rs. 75
5. A sale of Rs. 3000 has been credited to customer’s account.
Rectify the following errors, if they are detected after the preparation of the trial
balance
1. Sales book undercast by Rs. 5000
2. Purchases book undercast by Rs. 2500
3. Sales book overcast by Rs. 1000
4. Purchases book overcast by Rs. 1500
5. Returns inward book has been overcast by Rs. 200
6. Returns outward book has been overcast by Rs. 450
7. Return inward has been undercast by Rs. 1600
8. Returns outward has been undercast by Rs. 1300
9. Discount received Rs. 100 was posted to the wrong side of discount Account.
10. Sales Book was overcast by Rs 200.
11. Sales Return Book undercast by Rs. 400
12. Purchase Return Book undercast by Rs. 500.
13. Purchases book was undercast by $ 1,000.
14. Purchases book was overcast by $ 100.
Rectify the following errors, if they are detected after the preparation of Final
Accounts.
1. Cash paid to Mr. Gupta Rs.2000, debited to Mr. Raman’s A/c
2. Wages paid Rs. 1,500 for the installation of a new machine has been debited to the
‘Wages A/c’.
3. Purchase account was undercasted by Rs. 10,000

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