Rectify the following journal entries.

| Particulars | LF | Dr. ₹ | Cr. ₹ |
| --- | --- | --- | --- |
| 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/

Question

Rectify the following journal entries.

| Particulars | LF | Dr. ₹ | Cr. ₹ |
| --- | --- | --- | --- |
| 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 sale 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

Ramu Brothers purchased a machine on 1st July 2015 at a cost of ₹14,000 and spent ₹1,000 on its installation. The firm writes off depreciation at 10% of original cost every year. The books are closed on 31st December every year. Give journal entries and prepare machinery account and depreciation account for 2 years.

Accepted Answer

>

> [!TLDR]
> (a) Five rectification entries fix a nominal misposting, a wrong asset credit, a wrong personal account and a proprietor's drawings. (b) OR — SLM depreciation on a ₹15,000 machine: ₹750 for 2015 (6 months) and ₹1,500 for 2016, leaving ₹12,750.
>
> ### (a) Rectifying Entries
>
> | # | Wrong treatment | Rectifying entry | Dr ₹ | Cr ₹ |
> | --- | --- | --- | --- | --- |
> | A | Salary paid but Kumanan (personal) debited | Salaries A/c Dr / To Kumanan A/c | 10,000 | 10,000 |
> | B | Rent paid but Senguttuvan (personal) debited | Rent A/c Dr / To Senguttuvan A/c | 6,000 | 6,000 |
> | C | Furniture sold but Sales A/c credited | Sales A/c Dr / To Furniture A/c | 2,000 | 2,000 |
> | D | Cash sale but Kumararaja (personal) credited | Kumararaja A/c Dr / To Sales A/c | 10,000 | 10,000 |
> | E | Goods taken by proprietor but Manimaran A/c debited | Drawings A/c Dr / To Manimaran A/c | 1,000 | 1,000 |
>
> **Why:** A & B — salary and rent are expenses (nominal), not amounts owed to a person, so the personal account is replaced by the expense account. C — sale of a fixed asset must reduce Furniture, not Sales. D — a cash sale is income (Sales), so crediting a person is wrong; debit that person's account to cancel it and credit Sales. E — goods withdrawn by the owner are Drawings, not a receivable from him.
>
> ### (b) OR — Depreciation (Ramu Brothers)
>
> Cost of machine = ₹14,000 + ₹1,000 installation = **₹15,000**. Depreciation = 10% of original cost = ₹1,500 p.a. (straight line). Bought 1 July 2015, books closed 31 December → 2015 gets 6 months (₹750); 2016 gets a full year (₹1,500).
>
> **Journal entries**
> | Date | Particulars | Dr ₹ | Cr ₹ |
> | --- | --- | --- | --- |
> | 2015 Jul 1 | Machinery A/c Dr / To Bank A/c | 15,000 | 15,000 |
> | 2015 Dec 31 | Depreciation A/c Dr / To Machinery A/c | 750 | 750 |
> | 2015 Dec 31 | Profit & Loss A/c Dr / To Depreciation A/c | 750 | 750 |
> | 2016 Dec 31 | Depreciation A/c Dr / To Machinery A/c | 1,500 | 1,500 |
> |

Concept understanding — Rectification of Two-Sided Errors

(a) Rectifying Entries

(b) OR — Depreciation (Ramu Brothers)

(a) Rectifying Entries

(b) OR — Depreciation (Ramu Brothers)

(a) Rectifying Journal Entries

(b) Accounting Concepts

Particulars	Dr. ₹	Cr. ₹
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 sale 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)

#	Wrong treatment	Rectifying entry	Dr ₹	Cr ₹
A	Salary paid but Kumanan (personal) debited	Salaries A/c Dr / To Kumanan A/c	10,000	10,000
B	Rent paid but Senguttuvan (personal) debited	Rent A/c Dr / To Senguttuvan A/c	6,000	6,000
C	Furniture sold but Sales A/c credited	Sales A/c Dr / To Furniture A/c	2,000	2,000
D	Cash sale but Kumararaja (personal) credited	Kumararaja A/c Dr / To Sales A/c	10,000	10,000
E	Goods taken by proprietor but Manimaran A/c debited	Drawings A/c Dr / To Manimaran A/c	1,000	1,000

Date	Particulars	Dr ₹	Cr ₹
2015 Jul 1	Machinery A/c Dr / To Bank A/c	15,000	15,000
2015 Dec 31	Depreciation A/c Dr / To Machinery A/c	750	750
2015 Dec 31	Profit & Loss A/c Dr / To Depreciation A/c	750	750
2016 Dec 31	Depreciation A/c Dr / To Machinery A/c	1,500	1,500
2016 Dec 31	Profit & Loss A/c Dr / To Depreciation A/c	1,500	1,500

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 Entries

(b) OR — Depreciation (Ramu Brothers)

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