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Following errors affecting the account for the year 2020 21 were detected in the book das and co. Meerut 1 sale of old furniture for rupees 5000 was treated as sale of goods 2 rent of proprietor residence rupees 6000 was debited to rent account 3 cash receive from Rajesh rupees 2150 was credited Brijesh was the rectifying general entries the nature of each of these mistake?
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Following errors affecting the account for the year 2020 21 were detec...
Nature of Errors in Das and Co. Accounts
The following errors were detected in the accounts of Das and Co. for the year 2020-21, and they require rectification. Each error has a specific nature that affects the financial statements.
Error 1: Sale of Old Furniture Treated as Sale of Goods
- The sale of old furniture for Rupees 5000 was incorrectly classified as sales income.
- Nature: This is a Classification Error. The income from the sale of furniture should be recorded under a separate account, not as sales of goods, which affects the gross profit calculation.
Error 2: Rent of Proprietor's Residence Debited to Rent Account
- Rent paid for the proprietor's residence amounting to Rupees 6000 was debited to the rent account.
- Nature: This is a Personal Expense Error. The rent for a proprietor's personal residence is not a business expense and should not be included in the business's profit and loss statement.
Error 3: Cash Received from Rajesh Credited to Brijesh
- Cash received from Rajesh amounting to Rupees 2150 was incorrectly credited to Brijesh’s account.
- Nature: This is a Recording Error. This mistake leads to an incorrect balance in the accounts receivable and misrepresents the financial position regarding who owes money.
Rectifying Journal Entries
1. To correct the sale of furniture:
- Debit Sales Account: 5000
- Credit Furniture Account: 5000
2. To adjust the rent expense:
- Debit Drawings Account: 6000
- Credit Rent Account: 6000
3. To rectify the cash receipt:
- Debit Brijesh Account: 2150
- Credit Rajesh Account: 2150
These rectifying entries will help ensure the financial statements present a true and fair view of the company's financial position.
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Following errors affecting the account for the year 2020 21 were detected in the book das and co. Meerut 1 sale of old furniture for rupees 5000 was treated as sale of goods 2 rent of proprietor residence rupees 6000 was debited to rent account 3 cash receive from Rajesh rupees 2150 was credited Brijesh was the rectifying general entries the nature of each of these mistake?
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Following errors affecting the account for the year 2020 21 were detected in the book das and co. Meerut 1 sale of old furniture for rupees 5000 was treated as sale of goods 2 rent of proprietor residence rupees 6000 was debited to rent account 3 cash receive from Rajesh rupees 2150 was credited Brijesh was the rectifying general entries the nature of each of these mistake? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Following errors affecting the account for the year 2020 21 were detected in the book das and co. Meerut 1 sale of old furniture for rupees 5000 was treated as sale of goods 2 rent of proprietor residence rupees 6000 was debited to rent account 3 cash receive from Rajesh rupees 2150 was credited Brijesh was the rectifying general entries the nature of each of these mistake? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Following errors affecting the account for the year 2020 21 were detected in the book das and co. Meerut 1 sale of old furniture for rupees 5000 was treated as sale of goods 2 rent of proprietor residence rupees 6000 was debited to rent account 3 cash receive from Rajesh rupees 2150 was credited Brijesh was the rectifying general entries the nature of each of these mistake?.
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