CA Foundation Exam > CA Foundation Questions > Rectification of error- Furniture which stood...
Start Learning for Free
Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.?
Most Upvoted Answer
Rectification of error- Furniture which stood in the book at ₹500/-was...
Rectification of Error: Furniture Sale and Purchase
Rectifying Entry:
Date | Particulars | Debit | Credit
XX/XX/XXXX | Furniture A/c | ₹225 |
| Purchase A/c | | ₹225
Explanation:
The given error involves the sale of Furniture for ₹275/- instead of its book value of ₹500/-. The transaction involves part exchange of old furniture and purchase of new furniture. The correct journal entry for the above transaction should be:
Date | Particulars | Debit | Credit
XX/XX/XXXX | Furniture A/c | ₹500 |
| Sales A/c | | ₹275
| Bank A/c | | ₹275
XX/XX/XXXX | Purchase A/c | ₹875 |
| Furniture A/c | | ₹875
The above entry records the sale of old furniture and purchase of new furniture. However, the book value of furniture sold was ₹500/- but it was sold for ₹275/-. Therefore, we need to rectify this error by making an adjusting entry as shown below:
Date | Particulars | Debit | Credit
XX/XX/XXXX | Furniture A/c | ₹225 |
| Purchase A/c | | ₹225
The above entry debits Furniture A/c with the difference between the book value (₹500) and the sale value (₹275) i.e., ₹225/- and credits Purchase A/c with the same amount. This entry rectifies the error and brings the books of accounts in line with the actual transaction.
Conclusion:
Rectification of errors is an important aspect of accounting to ensure the accuracy and reliability of financial statements. In this case, the error was rectified by making an adjusting entry to correct the sale value of the old furniture. It is important to note that every error requires a unique rectification entry, and the correct entry can only be determined by analyzing the nature of the error and the transaction involved.
Rectifying Entry:
Date | Particulars | Debit | Credit
XX/XX/XXXX | Furniture A/c | ₹225 |
| Purchase A/c | | ₹225
Explanation:
The given error involves the sale of Furniture for ₹275/- instead of its book value of ₹500/-. The transaction involves part exchange of old furniture and purchase of new furniture. The correct journal entry for the above transaction should be:
Date | Particulars | Debit | Credit
XX/XX/XXXX | Furniture A/c | ₹500 |
| Sales A/c | | ₹275
| Bank A/c | | ₹275
XX/XX/XXXX | Purchase A/c | ₹875 |
| Furniture A/c | | ₹875
The above entry records the sale of old furniture and purchase of new furniture. However, the book value of furniture sold was ₹500/- but it was sold for ₹275/-. Therefore, we need to rectify this error by making an adjusting entry as shown below:
Date | Particulars | Debit | Credit
XX/XX/XXXX | Furniture A/c | ₹225 |
| Purchase A/c | | ₹225
The above entry debits Furniture A/c with the difference between the book value (₹500) and the sale value (₹275) i.e., ₹225/- and credits Purchase A/c with the same amount. This entry rectifies the error and brings the books of accounts in line with the actual transaction.
Conclusion:
Rectification of errors is an important aspect of accounting to ensure the accuracy and reliability of financial statements. In this case, the error was rectified by making an adjusting entry to correct the sale value of the old furniture. It is important to note that every error requires a unique rectification entry, and the correct entry can only be determined by analyzing the nature of the error and the transaction involved.
Community Answer
Rectification of error- Furniture which stood in the book at ₹500/-was...
Purchase A/c Dr. 100/ To Creditor/Cash A/c/ 100
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.?
Question Description
Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? 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 Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.?.
Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? 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 Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.?.
Solutions for Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? defined & explained in the simplest way possible. Besides giving the explanation of
Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.?, a detailed solution for Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? has been provided alongside types of Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? theory, EduRev gives you an
ample number of questions to practice Rectification of error- Furniture which stood in the book at ₹500/-was sold for ₹275/- in part exchange of new furniture costing ₹875/- and new invoice of ₹600/- was passed through the purchase book. please show rectifying entry for this.? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup