Question

Rectify the following errors: 

1. Sales returns book is overcast by Rs. 1,000. 

2. Purchases book is undercast by Rs. 2,000. 

3. Purchase returns book is overcast by Rs. 500.

Answer 1

1. Sales returns account should be credited with Rs. 1,000. 

2. Purchases account should be debited with Rs. 2,000. 

3. Purchase returns account should be debited with Rs. 500.