Question

Rectify the following errors:
(i) Wages paid for the construction of office debited to Wages Account Rs. 20,000.
(ii) Cartages paid for the newly purchased furniture Rs. 500, posted to Cartage Account.
(iii) Rs. 5,000 for the installation of machinery debited to Wages Account.
(iv) Machinery purchased for Rs. 50,000 was passed through the Purchases Book.
(v) Old furniture Sold for Rs. 5,000 was passed through the Sales Book.

Answer 1

Note: Wages paid for the construction of office should be debited to Building Account because it is a capital expenditure.