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CORRECTION OF ERRORS EXAMPLE WITH SOLUTION

(a) Purchase of supplies was wrongly debited to supplies expense account Rs.5,000.
Step # 1: What was the double entry?
Office supplies expense 5,000 Dr. and Cash 5,000 Cr.

Step # 2: What should the double entry have been?
Office supplies 5,000 Dr. and Cash 5,000 Cr.

Step # 3: Correcting entry:
Office supplies 5,000 Dr. and office supplies expense 5,000 Cr.


(b) Purchase of supplies for cash Rs.580 was recorded as Rs.508.
Step # 1: What was the double entry?
Office supplies 508 Dr. and Cash 508 Cr.

Step # 2: What should the double entry have been?
Office supplies 580 Dr. and Cash 580 Cr.

Step # 3: Correcting entry:
Office supplies 72 Dr. and cash 72Cr.


(c) Sales of typewriter credited to sales account Rs.800.
Step # 1: What was the double entry?
Cash 800 Dr. and Sales 800 Cr.

Step # 2: What should the double entry have been?
Cash 800 Dr. and Office equipment 800 Cr.

Step # 3: Correcting entry:
Sales 800 Dr. and Office equipment 800 Cr.


(d) Repair of equipment was debited to equipment account Rs.400.
Step # 1: What was the double entry?
Office equipment 400 Dr. and Cash 400 Cr.

Step # 2: What should the double entry have been?
Repairs expense 400 Dr. and Cash 400 Cr.

Step # 3: Correcting entry:
Repairs expense 400 Dr. and Equipment 400 Cr.


(e) Purchase of furniture debited to purchase account Rs.4,000.
Step # 1: What was the double entry?
Purchases 4,000 Dr. and Cash 4,000 Cr.

Step # 2: What should the double entry have been?
Furniture 4,000 Dr. and Cash 4,000 Cr.

Step # 3: Correcting entry:
Furniture 4,000 Dr. and Purchases 4,000 Cr.



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