Answer :
When preparing a Trial Balance, errors may sometimes be detected in the bookkeeping process. Here, we need to rectify the following errors:
Electric charge paid ₹ 300 was debited to WBSEB A/c.
- Error: The expense was recorded as a payment to 'WBSEB A/c' instead of 'Electricity Expenses A/c'.
- Correction: Debit 'Electricity Expenses A/c' and credit 'WBSEB A/c'.
Entry:
[tex]\text{Electricity Expenses A/c Debit } \ 300[/tex]
[tex]\text{WBSEB A/c Credit } \ 300[/tex]A sum of ₹ 500 received from Subhas has been posted to Suhas A/c.
- Error: The receipt from 'Subhas' was mistakenly posted to 'Suhas'.
- Correction: Debit 'Suhas A/c' and credit 'Subhas A/c'.
Entry:
[tex]\text{Suhas A/c Debit } \ 500[/tex]
[tex]\text{Subhas A/c Credit } \ 500[/tex]Repair charge paid ₹ 1,600 for motor car has been debited to Motor Car A/c.
- Error: This amount should be an expense, not an addition to the asset.
- Correction: Debit 'Repairs Expense A/c' and credit 'Motor Car A/c'.
Entry:
[tex]\text{Repairs Expense A/c Debit } \ 1,600[/tex]
[tex]\text{Motor Car A/c Credit } \ 1,600[/tex]Installation charge of a machine amounting to ₹ 450 was shown as repair.
- Error: This should be capitalized as part of the asset.
- Correction: Debit 'Machine A/c' and credit 'Repairs Expense A/c'.
Entry:
[tex]\text{Machine A/c Debit } \ 450[/tex]
[tex]\text{Repairs Expense A/c Credit } \ 450[/tex]Cash withdrawn from Bank for office use has been posted to Drawings A/c.
- Error: This transaction was meant to be a cash for business expenses, not personal use.
- Correction: Debit 'Office Expenses A/c' and credit 'Drawings A/c'.
Entry:
[tex]\text{Office Expenses A/c Debit } \ ext{(Amount not specified)}[/tex]
[tex]\text{Drawings A/c Credit } \ ext{(Amount not specified)}[/tex]
Each entry rectifies the respective error by ensuring the correct accounts are adjusted in the bookkeeping records, thus ensuring the Trial Balance accurately reflects the financial transactions.
