Final answer:
To rectify the errors, we need to make correcting entries for the machine sale, adjust the Sales Book undercasting, and rectify the rent payment entry. Once the errors are corrected, we can prepare the trial balance.
Step-by-step explanation:
A) Correcting entry for machine sale: To rectify the error, we need to reverse the incorrect entry in the Sales Book and create a new entry in the Sales Returns Book to show the return of the machine. The correcting entry would be to debit Sales Returns and credit Sales.
B) Adjusting Sales Book undercasting: To adjust the undercasting error, we need to find the difference between the actual total sales and the undercasted total sales. In this case, the Sales Book was undercasted by Rs 1,500. We would record a journal entry to debit Sales and credit Suspense Account with the amount of undercast.
C) Rectifying rent payment entry: To correct the rent payment entry, we need to reverse the incorrect entry and create a new entry for the correct account. In this case, the rent paid to Mr. Thapa was debited to Mr. Thapa's Account incorrectly. The correcting entry would be to debit Rent Expense and credit Cash or Bank, depending on the payment method.
D) Preparing the trial balance: After correcting the errors, we can prepare the trial balance by listing all the debit and credit balances of the ledger accounts to ensure that they are equal.