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Numerical Questions · Q3

Q.Rectify the following errors:

(i) Credit sales to Mohan ₹ 7,000 were recorded as ₹ 7,200.
(ii) Credit purchases from Rohan ₹ 9,000 were recorded as ₹ 9,900.
(iii) Goods returned to Rakesh ₹ 4,000 were recorded as ₹ 4,040.
(iv) Goods returned from Mahesh ₹ 1,000 were recorded as ₹ 1,600.
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Each transaction was recorded for a larger amount than correct. The accounts and sides are right, so only the excess (recorded amount − correct amount) is reversed by an entry opposite to the original. The trial balance is not affected, so no Suspense Account is used.

Nature of the error

These are errors of commission where the correct accounts on correct sides carry an inflated amount. Rectification reverses the excess so that each figure comes down to the correct amount.

Rectifying Journal Entries (reversing the excess)

DateParticularsL.F.Debit (₹)Credit (₹)
(i)Sales A/c ....................................Dr.200
    To Mohan’s A/c200
(Sales to Mohan ₹7,000 recorded as ₹7,200, excess now reversed)
(ii)Rohan’s A/c ................................Dr.900
    To Purchases A/c900
(Purchases from Rohan ₹9,000 recorded as ₹9,900, excess now reversed)
(iii)Purchases Return A/c ...............Dr.40
    To Rakesh’s A/c40
(Return to Rakesh ₹4,000 recorded as ₹4,040, excess now reversed)
(iv)Mahesh’s A/c ..............................Dr.600
    To Sales Return A/c600
(Return from Mahesh ₹1,000 recorded as ₹1,600, excess now reversed)

Working Notes

  1. (i) Excess = ₹7,200 − ₹7,000 = ₹200.
  2. (ii) Excess = ₹9,900 − ₹9,000 = ₹900.
  3. (iii) Excess = ₹4,040 − ₹4,000 = ₹40.
  4. (iv) Excess = ₹1,600 − ₹1,000 = ₹600.
✓Final answer

Reverse only the excess: (i) Sales A/c Dr ₹200 / To Mohan;

(ii) Rohan’s A/c Dr ₹900 / To Purchases;

(iii) Purchases Return A/c Dr ₹40 / To Rakesh;

(iv) Mahesh’s A/c Dr ₹600 / To Sales Return.

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