(a) Rectify the following Journal entries.

| Particulars | L.F. | Debit ₹ | Credit ₹ |
| --- | --- | --- | --- |
| (a) Kumanan A/c Dr. | | 10,000 | |
| To cash A/c | | | 10,000 |
| (Salary paid to Kumanan) | | | |
| (b) Senguttuvan A/c Dr. | | 6,000 | |
| To cash A/c | | | 6,000

Question

(a) Rectify the following Journal entries.

| Particulars | L.F. | Debit ₹ | Credit ₹ |
| --- | --- | --- | --- |
| (a) Kumanan A/c Dr. | | 10,000 | |
| To cash A/c | | | 10,000 |
| (Salary paid to Kumanan) | | | |
| (b) Senguttuvan A/c Dr. | | 6,000 | |
| To cash A/c | | | 6,000 |
| (Rent paid to Senguttuvan) | | | |
| (c) Cash A/c Dr. | | 2,000 | |
| To sales A/c | | | 2,000 |
| (Furniture sold for cash) | | | |
| (d) Cash A/c Dr. | | 10,000 | |
| To Kumararaja A/c | | | 10,000 |
| (Goods sold to Kumararaja for cash) | | | |
| (e) Manimaran A/c Dr. | | 1,000 | |
| To Purchases A/c | | | 1,000 |
| (Goods taken by the Proprietor Mr. Manimaran for his personal use) | | | |

OR

(b) Explain the following accounting concepts.
(i) Business entity concept
(ii) Cost concept
(iii) Dual aspect concept
(iv) Matching concept
(v) Going concern concept

Accepted Answer

>

> [!TLDR]
> (a) Rectifying journal entries that debited/credited the wrong accounts; (b) the five basic accounting concepts explained.
>
> ## (a) Rectifying Journal Entries
>
> Each original entry recorded the correct amount but in the **wrong account** (errors of principle). The rectifying entry shifts the amount to the correct account.
>
> | Particulars | L.F. | Dr ₹ | Cr ₹ |
> | --- | --- | --- | --- |
> | (a) Salary A/c Dr | | 10,000 | |
> |   To Kumanan A/c | | | 10,000 |
> | *(Salary wrongly debited to Kumanan, now corrected)* | | | |
> | (b) Rent A/c Dr | | 6,000 | |
> |   To Senguttuvan A/c | | | 6,000 |
> | *(Rent wrongly debited to Senguttuvan, now corrected)* | | | |
> | (c) Sales A/c Dr | | 2,000 | |
> |   To Furniture A/c | | | 2,000 |
> | *(Furniture sold wrongly credited to Sales, now corrected)* | | | |
> | (d) Kumararaja A/c Dr | | 10,000 | |
> |   To Sales A/c | | | 10,000 |
> | *(Cash sale wrongly credited to Kumararaja instead of Sales)* | | | |
> | (e) Drawings A/c Dr | | 1,000 | |
> |   To Manimaran A/c | | | 1,000 |
> | *(Goods taken by proprietor should be Drawings, not his personal a/c)* | | | |
>
> *Explanation:* (a) & (b) salary/rent are expenses, not amounts owed to those persons; (c) sale of a fixed asset must reduce Furniture, not Sales; (d) a cash sale is credited to Sales, not to a person; (e) goods withdrawn by the proprietor are **Drawings**.
>
> ## (b) Accounting Concepts
>
> 1. **Business entity concept:** the business is treated as separate and distinct from its owner. Only business transactions are recorded, and the owner's capital is shown as a liability of the business to the owner.
> 2. **Cost concept:** assets are recorded at their **acquisition (historical) cost**, not at market value; depreciation is later charged on this recorded cost. …

Particulars	Debit ₹	Credit ₹
(a) Kumanan A/c Dr.	10,000
To cash A/c		10,000
(Salary paid to Kumanan)
(b) Senguttuvan A/c Dr.	6,000
To cash A/c		6,000
(Rent paid to Senguttuvan)
(c) Cash A/c Dr.	2,000
To sales A/c		2,000
(Furniture sold for cash)
(d) Cash A/c Dr.	10,000
To Kumararaja A/c		10,000
(Goods sold to Kumararaja for cash)
(e) Manimaran A/c Dr.	1,000
To Purchases A/c		1,000
(Goods taken by the Proprietor Mr. Manimaran for his personal use)

Particulars	Dr ₹	Cr ₹
(a) Salary A/c Dr	10,000
To Kumanan A/c		10,000
(Salary wrongly debited to Kumanan, now corrected)
(b) Rent A/c Dr	6,000
To Senguttuvan A/c		6,000
(Rent wrongly debited to Senguttuvan, now corrected)
(c) Sales A/c Dr	2,000
To Furniture A/c		2,000
(Furniture sold wrongly credited to Sales, now corrected)
(d) Kumararaja A/c Dr	10,000
To Sales A/c		10,000
(Cash sale wrongly credited to Kumararaja instead of Sales)
(e) Drawings A/c Dr	1,000
To Manimaran A/c		1,000
(Goods taken by proprietor should be Drawings, not his personal a/c)

(a) Rectifying Journal Entries

(b) Accounting Concepts

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