Pass journal entries to rectify the following errors detected during preparation of Trial Balance: (i) Purchases book is undercast by ₹ 1,000.

Pass journal entries to rectify the following errors detected during preparation of Trial Balance:

(i) Purchases book is undercast by ₹ 1,000.

(ii) Wages paid for construction of office debited to wages account ₹ 20,000.

(iii) A credit sale of goods ₹ 1,200 to Ramesh has been wrongly passed through the purchase book.

(iv) Goods purchased for ₹ 5,000 were posted as ₹ 500 to the purchases account.

(v) A credit purchase of ₹ 1,040 from Ramesh was passed in the books as ₹ 1,400.

(vi) Goods (Cost ₹ 5,000; Sales Price ₹ 6,000) distributed as free samples among prospective customers was not recorded anywhere.

(vii) Goods worth ₹ 1,500 returned by Green and Co. have not been recorded anywhere.

Solution:-