Possible response:

Rectification of Sales Error

To correct the mistake of recording the sale of ₹375 to Kohli as ₹735 in the sales book, we need to identify the correct value of the sale and adjust the accounts accordingly. There are two ways to do this, depending on whether we know who the other party involved in the transaction is.

Option A: Using Suspense Account

Assuming that we do not know the name of the other party or the correct amount of the sale, we can create a temporary account called Suspense Account to hold the difference between the recorded and actual values of the sale. This account allows us to balance the books while we investigate the error further. The journal entry for this option would be:

Sales Account Debit ₹360 (₹735 - ₹375)
Suspense Account Credit ₹360

Explanation: We debit the Sales Account by the amount of the error (₹360) to reduce its balance to the correct amount (₹375). We credit the Suspense Account by the same amount to increase its balance to the amount of the discrepancy (₹360). Later, when we find out the correct value of the sale, we will debit or credit the Suspense Account accordingly and thus resolve the suspense.

Option B: Using Kohli Account

Assuming that we know that Kohli is the buyer of the goods and that the error is due to mistyping or miscalculating the amount, we can simply credit Kohli's account with the correct amount and debit the Sales Account accordingly. The journal entry for this option would be:

Sales Account Debit ₹375
Kohli Account Credit ₹375

Explanation: We debit the Sales Account by the correct amount of the sale (₹375) to increase its balance to the right value. We credit Kohli's account by the same amount to reduce his balance (or increase his credit balance) to reflect the payment he made. This option assumes that there are no other errors or omissions in the accounts related to this transaction.

Conclusion:

Both options are valid ways of rectifying the sales error, but the choice depends on the information available and the level of confidence in the accuracy of the accounts. Option A is more suitable when the details of the transaction are unclear or incomplete, while Option B is more appropriate when the error is a simple mistake that can be traced to a specific account. In any case, it is important to document the correction clearly and update the accounts promptly to avoid further errors and confusion.

The Accounting entry will be :
Kholi's A/c DR 360
To Sales Account 360..

*Suspense Account is opened whenever it is not mention that to whom we sell the goods but here, mention that goods were sold to kohli so Suspense account will not be opened here, so 1st Entry will be incorrect

*As per the Accounting rules, Debit the receiver, kohli is the reciever of goods purchased by him.. so kohli will be debited
And according to Nominal Account we always credit all incomes and gains so sales is our income and we credit sales account.
So Both the entries given are incorrect.