1. Its 540 received from M. Mehta was posted to the debit of his account.
The amount of M. Mehta should have been credited by P.s 540. It has been debited. In order to set the matters right, it is necessary to credit his account by Ps 1,080 (i.e., to cancel unnecessary debit of P.s 540 and to give him credit of Ps 540).
2. Rs 100 being Purchases Returns was posted to the debit of Purchases Account.
The Purchases Returns Account should have been credited by a sum of P.s 100 on account of return of the goods. It has not been at all credited. It has, therefore, been credited by Es 100. The Purchases Account should not have been at all debited. It has, therefore, been credited by P.s 100. Suspense Account has been debited by Rs 200, since no other account is available and it must have been credited earlier on account of these errors.
3. Discount Rs 200 received, entered in the cash book was not posted to the Ledger.
The amount of discount received is credited to the Discount Account. It has not been done, Discount Account, has therefore, been credited now, Suspense Account has been debited because it must have been credited earlier on account of this error.
4. Its 574 paid for repairs to motor-car was debited to the motor-car account as Rs 574.
Repairs to motorcar is a revenue expenditure. It should has been debited 10 the Repairs Account. 11 has not been done. The Repairs Account has, therefore, been debited by P.s 574. Motor Car Account has been unnecessarily debited by Rs 174. It should, therefore, be credited by this amount. The difference has been put to the Suspense Account.
5. A sale of Rs 350 to Sethi was entered in the Sales Book as of its 530.
The sale to Sethi was only of Rs 350, but it has been recorded as a sale of Rs 530. It means the account of Sethi has been unnecessarily debited by P.s 180. It has, therefore, been credited by this amount. Sales Account has been credited by Ps 530, instead of Ps 350. It has, therefore, been debited by Rs 180, the excess credit.
6. While carrying forward total of one page in Kaka’s Account, the amount of Rs 250 was written on the credit side instead of debit side.
The account of Kalra should have been debited by Rs 250. It has been credited by Rs 250. His account should, therefore, he debited by Rs 500 to cancet unnecessary credit of Rs 250 and to keep his account debited by Ps 250. Suspense Account has been credited by Rs 500 since no other account is involved.
7. The purchase of machinery on 1sf January, 1990 for Its 6,000 was entered in the Purchases Account.
Purchase of Machinery of Ps 6,000 should have been debited to the Machinery Account. ft was not done. The Machinery Account has therefore been debited by Es 6,000. Purchases Account was unnecessarily debited by Ps 6,000. Ii has, therefore, been credited by the above amount.