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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.?
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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
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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.?
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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 2025 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 2025 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 2025 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 2025 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.?.
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