Question 4 (10 marks)

The following errors are in the books of Mr. Hilal at end March 2017. The error committed is provided. Discuss the following for each of the below errors:

a) The type of error committed; and

b) Rectification Process (in words) and

c) Rectify the error (entry)

i) Machinery purchased from Mr. Rafiq RO. 8000 was entered into the Purchase book.

Accounts

Dr.

Cr.

Purchases

Rafiq

8,000

8,000

ii) Credit sales to Fatima RO. 10,000 is debited wrongly to the account of Sharifa.

Accounts

Dr.

Cr.

Sharifa

Sales

10,000

10,000

iii) Cash received from customer RO. 4500, entered as RO 4050.

Accounts

Dr.

Cr.

Cash

A/R

4,050

4,050

iv) Goods purchased for Cash RO. 240 posted incorrectly.

Accounts

Dr.

Cr.

Purchases

Cash

480

480

v) Credit sales to Maryam RO. 12000 is debited wrongly to the account of Mana.

Accounts

Dr.

Cr.

Mana

Maryam

12,000

12,000