MGT101 - Financial Accounting Assignments No.01 Solution and Discussion Fall 2013 Due Date: February 17, 2014
Assignment (Non-Graded)
Dated: Feb 10, 14
Important announcement
Assignment (Non-Graded)
FINANCIAL ACCOUNTING (MGT101)
Dear Students!
This is to inform that a Non-Graded Assignment will be opened on February 12, 2014 and due date of assignment submission will be February 17, 2014.`
By Non-graded, we mean that it will not be included in your semester GPA.
A 24 hours extra/grace period after the due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies; and above mentioned due date should always be treated as final to avoid any inconvenience.
Question
Following errors have been found in the books of ABC Corporation which maintained their
accounting record under periodic inventory system.
Required:
Pass the rectified journal entries in the books of accounts.
S.No. Found Errors
1 Sale of goods worth Rs. 10,000 on credit basis to Mr. A was wrongly passed through the
purchase book.
2 Purchase of goods amounting to Rs. 20,000 from Mr. B was wrongly passed through the
sales book.
3 An amount of Rs. 5,000 paid for the installation of plant and machinery was wrongly
debited to wages account.
4 Sale of old furniture amounting to Rs. 10,000 was passed through the sales book.
5 A purchase of Rs. 2,000 from Mr. C was wrongly passed through the return outwards
book.
6 A sale of Rs. 3,000 to Mr. D was wrongly passed through the return inwards book.
7 Goods sold to Mr. Y of Rs. 945 have been wrongly entered in the sales book as Rs. 495.
8 Return inwards of Rs. 1,000 from Mr. Z was omitted to record in the books of accounts.
ASSIGNMENT QUESTION
DUE DATE: 17TH FEBRUARY 2014
Rectification Entries:
1 Debit: Suspense Account 2,000
Credit: Purchase A/C 1,000
Credit: Sales A/C 1,000
2) Debit: Purchase Account 2,000
Debit: Sales Account 2,000
Credit: Suspense Account 4,000
3) Debit: Installation of Plant 5,000
& Machinary A.C
Credit: Wages A/C 5,000
4) Debit: Sales A/C 10,000
Credit: Furniture A/C 10,000
5) Debit: Purchase A/C 2,000
Credit: Return Outward A/C 2,000
6) Debit: Return inward 3,000
Credit: Sales A/C 3,000
Entry # 7:
Correct entry:
Debit: Mr. Y A/C 945
Credit: Sales 945
Incorrect entry:
Debit: Mr. Y A/C 945
Credit: Sales 495
Credit: Suspense A/C 450
Rectifying entry:
Debit: Suspense A/C 450
Credit: Sales 450
Entry # 8:
Correct entry:
Debit: Sale Return inward 1,000
Credit: Mr. Z 1,000
Incorrect entry:
Omitted to record in the book of account. (so , nothing in this entry.)
Rectifying entry:
Debit: Sale Return inward 1,000
Credit: Mr. Z 1,000