Rameela, a class 11 student, visited one of her relative’s furniture shop. She met the accountant of the shop. He was busy with preparing final accounts. At that time, one of the staff approached the accountant with a list of errors found in ledger postings. Rameela asked the accountant, in a surprised tone, “Is it possible to rectify the errors before preparing the final accounts?” The accountant replied, “Yes, it is!” final accounts?” The accountant replied,
“Yes, it is!”
Rameela was curious to analyse the errors. She found the following:
1. Furniture sold on credit to Siva and company for Rs. 12,000 was debited to Sam and company;
2. Rent paid Rs. 2,500, was debited to rent account as Rs. 250.
3. The total of purchase journal was undercast by Rs. 1,000.
4. A sales invoice for Rs. 2,000, completely omitted from the books.
5. Stationery bought for Rs. 250, was posted to purchases account.
Can you help Rameela to identify and rectify the errors?