1.

Rectify the following errors by means of Journal entries: (i) A cheque of ₹ 5,000 received from Ashish was dishonoured and was debited to Discount Account. (ii) Purchases of ₹ 540 from Ramneek was written in Sales Book but was correctly posted to correct side to Ramneek’s Account. (iii) Salary paid to Miss Yugakshi ₹ 1,000 was debited to her Personal Account as ₹ 900. (iv) Furniture costing ₹ 500, purchased from Jyoti, was wrongly entered in Purchases Book as ₹ 450.

Answer»

A journal ENTRY is the act of keeping or making RECORDS of any transactions either Economic or non economic. Transactions are listed in an accounting journal that SHOWS a company's DEBIT and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit.



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