FINANCIAL ACCOUNTING (MGT101) ASSIGNMENT - 01 Solution and Disscussion Due Date: 17 FEB 2014

[♦_"Rim Jhim"_♦]

FINANCIAL ACCOUNTING (MGT101)

 

NON-GRADED ASSIGNMENT - 01

 

By Non- graded, we mean that it will not be included in your semester GPA (No weightage in final marks).

 

TOPIC TO BE TESTED:

 

DUE DATE: 17^TH FEBRUARY 2014

 

• “Rectification of Errors”

 

LEARNING OBJECTIVES:

 

• To develop an understanding about rectifying the errors in the books of accounts.

 

 

ASSIGNMENT QUESTION

 

Following errors have been found in the books of ABC Corporation which maintained their accounting record under periodic inventory system.

 

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.

 

 

 

Required:

 

Pass the rectified journal entries in the books of accounts.

IMPORTANT:

 

Grace period of extra 24 hours after the due date is usually available to overcome uploading difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

 

IMPORTANT INSTRUCTIONS

 

• Take help from internet for collecting the information.

 

• Carefully watch relevant lectures and consult the relevant material from handouts along with recommended books.

 

• Attempt the assignment by yourself and it will be entertained positively.

 

OTHER IMPORTANT INSTRUCTIONS:

 

DEADLINE:

 

• Make sure to upload the solution file before the due date on VULMS.

 

• Any submission made via email after the due date will not be accepted.

 

FORMATTING GUIDELINES:

 

• Use the font style “Times New Roman” or “Arial” and font size “12”.

 

• It is advised to compose your document in MS-Word format.

 

• You may also compose your assignment in Open Office format.

 

• Use black and blue font colors only.

 

 

RULES FOR MARKING

 

Please note that your assignment will not be graded or graded as Zero (0), if:

 

• It is submitted after the due date.

 

• The file you uploaded does not open or is corrupt.

 

• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.

 

• It is cheated or copied from other students, internet, books, journals etc.
• Accounts involved are incorrectly mentioned in the given table of assignment even if the rules of debit and credit are correctly mentioned. So be careful to mention the accounts involved against each transaction.

 

Note related to load shedding: Please be proactive Dear students!

 

As you know that Post Mid-Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

 

[+_ M@L!K_MIT Completed]

Purchase of goods amounting to Rs. 20,000 from Mr. B was wrongly passed through the sales book.

Original Entry: Purchases  20,000            Wrong Entry Mr. B 20,000

                            Mr. B     20,000                              Sales 20,000

Rectifying:  Purchase    20,000

                Sale A/C     20,000

                                         Mr. B 40,000

Reason Purchases 20,000 ki hui thien woh entry hu gai. sales ghalat credit hui hui thien woh debit bhi hu gai tu effect nil Mr B ghalat amount sy debit hua hua tha tu double amount sy credit kernay sy ghalat debit ka effect nil aur remaining jitnaa aus ko actually credit hona tha 

[+_ M@L!K_MIT Completed]

3               An amount of Rs. 5,000 paid for the installation of plant and machinery was wrongly debited to wages account.

Original Entry: Installation of Plant & M  5,000                Wage A/C   5,000

                                       Cash A/C      5,000                          Cash 5,000

Rectifying : Installation of Plant and M   5,000

                                        Wages        5,000 

[+_ M@L!K_MIT Completed]

Sale of old furniture amounting to Rs. 10,000 was passed through the sales book

Original Entry: Cash A/C  10,000                  Wrong:   Cash A/C    10,000

                            Furniture A/C  10,000                          Sales A/C  10,000

Rectify :  Sales A/C   10,000

                           Furniture A/C   10,000

[+_ M@L!K_MIT Completed]

               A purchase of Rs. 2,000 from Mr. C was wrongly passed through the return outwards book.

   Original Entry: Purchases  2,000                  Wrong Entry: Return Outwards 2,000

                                Mr C     2,000                                        Mr. C           2,000

  Rectify: Purchase A/C  2,000

                    Return Outward 2,000

 

                A sale of Rs. 3,000 to Mr. D was wrongly passed through the return inwards book.

 

                Goods sold to Mr. Y of Rs. 945 have been wrongly entered in the sales book as Rs. 495.

            Original Entry: Mr. Y  A/C   945               Wrong: Mr Y A/C   495

                                    Sales A/C   945                            Sales A/C  495

           Rectify Entry: Mr Y A/C   450

                                     Sales A/C   450

 

8                Return inwards of Rs. 1,000 from Mr. Z was omitted to record in the books of accounts.

                 Return Inwards    1,000

                                 Mr. Z        1,000

[+_ M@L!K_MIT Completed]

I missed this

A sale of Rs. 3,000 to Mr. D was wrongly passed through the return inwards book.

Original Entry: Mr.   D    3,000                 Wrong Entry:  Mr. D   3,000

                            Sales    3,000                                    Sales Return  3,000

Rectifying Entry: Sales Return   3,000

                               Sales A/C   3,0000    

[muhammad irshad]

Bhai baqi sub thek hain but 5th and 6th number entries are not correct i think.

 

[muhammad irshad]

Return inwards means Sales returns and return outwards means purchases returns.

Returns inwards are always Dr. and Return outwards are Cr.

here entry # 5 will be

Original entry: Purchases A/c 2000

                              to Mr. C 2000

Wrong entry: Mr. C 2000

                       to return outwards 2000

Rectify entry: Return outwards 2000

                   Purchases        2000

                        To Mr. C A/c 4000

Entry # 6:

Rectify entry: Mr. D 6000

                      to Return inwards 3000

                      to sales  3000

[Yasir Ali Gillani]

Muhammad Irshad ! what u think is RIGHT bro. +_ M@L!K_  did a good job but these two entries are wrong. 

[+ M.Tariq Malik]

Entry # 1:

Correct entry:

Debit:            Mr. A   A/C                            10,000

Credit:                         Sale   A/C                                      10,000

Incorrect Entry:

Debit:           Mr. A     A/C                           10,000

Debit:           Purchase A/C                         10,000

Credit:                         Suspense A/C                               20,000

Rectifying Entry:

Debit:           Suspense A/C                         20,000

Credit:                         Purchase A/C                                10,000

Credit:                         Sales A/C                                       10,000

Chk my 1st entry

[+ M.Tariq Malik]

Entry # 2:

Correct entry:

Debit:          Purchase A/C                           20,000

Credit:                         Mr. B                                               20,000

Incorrect entry:

Debit:         Suspense A/C                           40,000

Credit:                        Mr. B A/C                                         20,000

Credit:                        Sales A/C                                          20,000

Rectifying entry:

Debit:         Purchase A/C                            20,000

Debit:         Sales A/C                                   20,000

Credit:                        Suspense A/C                                  40,000

[+ M.Tariq Malik]

Entry # 3:

Correct entry:

Debit:        Installation of P & M                 5,000

Credit:                        Cash                                                   5,000

Incorrect Entry:

Debit:        Wages                                          5,000

Credit:                         Cash                                                  5,000

Rectifying entry:

Debit:       Installation of P & M                  5,000

Credit:                         Wages                                              5,000

[+ M.Tariq Malik]

Entry # 4:

Correct entry:

Debit:       Cash                                              10,000

Credit:                          Furniture                                         10,000

Incorrect entry:

Debit:       Cash                                               10,000

Credit:                          Sales                                                 10,000

Rectifying entry:

Debit:        Sales A/C                                       10,000

Credit:                             Furniture                                            10,000