Rectify the following errors found in the books of Mr. Aryan by passing entries: The purchase of ₹ 610 from Kabir was entered into sales book but Kabir’s personal account was rightly credited.

Rectify the following errors found in the books of Mr. Aryan by passing entries:

(i) The purchase of ₹ 610 from Kabir was entered into sales book but Kabir’s personal account was rightly credited.

(ii) Sale of old furniture of ₹ 2,500 was credited to sales account as ₹ 250.

(iii) An item of ₹ 500 relating to prepaid insurance account was omitted to be brought forward from the previous year’s books.

(iv) ₹ 220 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Solution:-