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Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error?
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Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in p...
Rectification of Error in Purchase Book
Given Information:
- Furniture was sold for Rs.275 in part exchange of new furniture costing Rs.75 each.
- The furniture was originally recorded in the books at Rs.500.
Mistake:
The original entry for the furniture was incorrect, resulting in an incorrect cost of goods sold and an incorrect profit or loss calculation.
Steps to Rectify the Error:
1. Adjust the original entry for the furniture to reflect the correct cost of Rs.75 each.
2. Reverse the incorrect entry for the sale of the furniture at Rs.275.
3. Record the correct entry for the sale of the furniture in part exchange for the new furniture costing Rs.75 each.
4. Adjust the cost of the new furniture to reflect the correct total purchase price of Rs.600.
Rectified Entries:
| Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.) |
|------|------------|------|-------------|--------------|
| | | | | |
| | | | | |
| | | | | |
Conclusion:
By rectifying the error in the purchase book, the cost of goods sold and profit or loss calculation will be accurate, providing a true representation of the financial performance of the company. It is important to maintain accurate records and rectify any errors promptly to ensure the reliability of financial statements.
Given Information:
- Furniture was sold for Rs.275 in part exchange of new furniture costing Rs.75 each.
- The furniture was originally recorded in the books at Rs.500.
Mistake:
The original entry for the furniture was incorrect, resulting in an incorrect cost of goods sold and an incorrect profit or loss calculation.
Steps to Rectify the Error:
1. Adjust the original entry for the furniture to reflect the correct cost of Rs.75 each.
2. Reverse the incorrect entry for the sale of the furniture at Rs.275.
3. Record the correct entry for the sale of the furniture in part exchange for the new furniture costing Rs.75 each.
4. Adjust the cost of the new furniture to reflect the correct total purchase price of Rs.600.
Rectified Entries:
| Date | Particulars | L.F. | Debit (Rs.) | Credit (Rs.) |
|------|------------|------|-------------|--------------|
| | | | | |
| | | | | |
| | | | | |
Conclusion:
By rectifying the error in the purchase book, the cost of goods sold and profit or loss calculation will be accurate, providing a true representation of the financial performance of the company. It is important to maintain accurate records and rectify any errors promptly to ensure the reliability of financial statements.
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Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error?
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Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error?.
Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Furniture which stood in the books at Rs.500 was sold for Rs.2 75 in part exchange of new furniture costing rupees each 75 and the new invoice of Rs.600 was passed through the purchase book rectify the error?.
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