Rectifying the Error of Goods not Recorded in Purchase Book

To rectify the error of goods costing 1000 purchased on credit from Sohan not being recorded in the purchase book, the following steps can be taken:

1. Identify the Error:
First, we need to identify the error and understand the impact it has on the accounting records. In this case, the error is that the purchase of goods costing 1000 on credit from Sohan has not been recorded in the purchase book.

2. Analyze the Impact:
The error of not recording the purchase in the purchase book affects the accuracy of the financial statements and the inventory records. It fails to reflect the true financial position of the business, as the inventory value will be understated and the expenses will be understated.

3. Update the Purchase Book:
To rectify the error, the purchase book needs to be updated. The following entry should be made in the purchase book:

Date | Particulars | L.F. | Debit | Credit
-------------------------------------------------------
[Date] | Sohan's A/C | | | 1000
To | Purchase A/C | | 1000

4. Update the General Ledger:
The next step is to update the general ledger. The entry made in the purchase book should also be recorded in the respective ledger accounts. In this case, the entry should be made in Sohan's A/C and Purchase A/C.

5. Update the Trial Balance:
After updating the general ledger, the trial balance needs to be updated by incorporating the corrected figures. The trial balance should be adjusted to reflect the correct balances of Sohan's A/C and Purchase A/C.

6. Adjust Inventory Records:
Since the goods were taken into stock, the inventory records should also be adjusted to reflect the correct inventory balance. The inventory value should be increased by 1000 to account for the goods that were purchased but not recorded in the purchase book.

7. Reconcile the Accounts:
Once the necessary adjustments have been made, the accounts should be reconciled to ensure that the balances are now accurate and in agreement with each other.

8. Review and Verify:
Finally, it is important to review and verify the rectification entries and adjustments to ensure that the error has been corrected and the financial records are now accurate.

By following these steps, the error of goods not recorded in the purchase book can be rectified. It is important to maintain accurate and up-to-date accounting records to ensure the reliability of financial statements and to make informed business decisions.