Humans can make unintentional errors, but in Accounting, there is an option to make a Rectification entry for the errors. Some errors affect the Trial Balance, some not Rectification of errors depends on the timing of its detection: 1.Errors detected before preparation of Trial Balance are corrected by "Writing a Narration" for Single Sided Errors & " Rectified entry for Double Sided Error" 2. Errors detected after Trial Balance : by " Opening Suspense A/C for Single Sided Errors" " Rectification Entry" 3. Errors detected in Next accounting period : Through P&L Adjustment Accounts

1. RECTIFICATION OF
ERRORS

2. Trial Balance(Verifies the arithmetical accuracy)
may not Agree/tally
Because of some errors committed while
recording/Classification stage
Errors are unintentional mistakes
The trail may agree ( even after some errors)
as some does not affect the trial balance

3. Errors can be of Two Types
Errors affecting the Trial Balance
Errors Doesn’t affecting the Trial Balance

4. Types of Errors (Sides/Impact Point of View)
Single Sided Errors Double sided Errors
Error with only one Errors with both the
Side(Dr/Cr) of Entry sides
Affect Trial Balance Do not affect
Trial Balance

5. Principal Errors
( Rules, Concepts)
Clerical Errors
Omission Errors Compensatory Error
Commission Errors

6. Transaction in contravention of accounting
principles
Error in recognizing Capital/Revenue
Transactions
Does not affect the Trial Balance

7. Wages for construction of building, debited to
wages A/c
Purchase of Fixed Asset debited to
Purchases A/c
Regular repairs of building, debited to
Building A/C

8. Not considering a transaction
Full Omission Partial Omission
Both Aspects(Dr/Cr) Entry not posted
During Recording During Posting
(not entered in Journal at all)
Not affect the Trial Balance Affect the Trial
Balance.

9. Silly mistakes because of carelessness
Errors may relate to a wrong amount,
Correct amount in Wrong Account/Side
While Journalizing, Ledger posting , Casting,
Balancing or Carry forwarding
May/ may not affect the Trial Balance
Generally these affect Trial Balance

10. Effect of errors is cancelled
The second error compensate the impact of the
first error
Do not affect the Trial Balance

11. Rectification method depends on the Timing of
detection of an error
Before After Final Accounts
Trail Balance (in next period)
After
Trial Balance
(Before Final Accounts)

12. Double sided Errors- Rectified by a
Rectifying Journal Entry
Single Sided Errors
Suspense A/c P&LAdj. A/c
(After Tr. Bal.) (Next Period)
Narration/
Rectification statement
Without Suspense A/c
(before Tr. Bal.)

13. Sales Book is Undercast by 1,500
If after Tr. Bal.
Journal Entry : Debit : Suspense A/c
Credit : Sales A/c
If detected before Tr. Bal.
Cr. Side(Sales A/c) - Undercasting of Sales book –
1,500

14. 1. ` 250 written off as depreciation on Machinery has
not been debited to Depreciation Account
2. Goods purchased of ` 300 have bee posted to the
debit of Supplier X.
3. Purchase of `67 has been posted to the Trade
Payables Account as ` 60.

15. Pass the wrong entry
Reverse the Wrong Entry
pass the correct entry
pass the Rectification entry (comparing the
second & third Entry).

16. The purchase of machinery for ` 2,000 has been entered in the
purchases book
Wrong Entry:
Purchases Account Dr. 2,000
To Trade Payable 2,000
Reverse Entry:
Trade Payable Dr. 2,000
To Purchases Account 2,000
Correct Entry:
Machinery Account Dr. 2,000
To Trade Payable 2,000
Rectifying Entry:
Machinery Account Dr. 2,000
To Purchases Account 2,000

17. Rectifications done through
“ P&LAdjustment A/c/Prior Period Items A/c
(Error’s ultimate effect on P&L A/c is considered)”
Wages of ` 2,500 paid for the installation of machinery
charged to wages account(detected next year)
Rectification entry
Machinery Account Dr. 2,500
To Profit and Loss Adjustment Account 2,500

18. Q.1. Errors of commission do not permit
Correct totalling of the balance sheet
Correct totalling of the trial balance
The trial balance to agree
None of the above
C

19. Q.2. If depreciation is excess charged by Rs.500 and
closing stock is understated by Rs.500, the net profit
will be _____ due to these errors
Understated by Rs.500
Understated by Rs.1000
Overstated by Rs.1000
No effect
B

20. Q.3. Sale of old furniture is erroneously entered in sales
book. Rectification entry will be:
Debit Sales A/c, Credit Furniture A/c
Debit Furniture A/c, Credit Sales A/c
Debit Debtor A/c, Credit Furniture A/c
Debit Sales A/c, Credit Debtor A/c
A

21. Q.4. Which of the following errors will affect the trial
balance?
Repairs to building wrongly debited to Building A/c
Total of Purchase Journal by ` 1,000 short
Freight paid on new machinery debited to Freight A/c
None of the three
B

22. Q.5. In case trial balance does not agree, difference is put
to
Suspense A/c
Drawing A/c
Capital A/c
Trading A/c
A

23. Q.6. On purchases of old furniture, the amount spent on
its repair should be debited to
Repair A/c
Furniture A/c
Cash A/c
Bank A/c
B

24. Q.7. Goods worth Rs.272 returned by Lala passed
through the books as Rs.722. The rectification entry is
–
Lala will be debited by Rs.450
Lala will be debited by Rs.272
Lala will be credited by Rs.722
Lala will be credited by Rs.272
A

25. Q.8. Commission paid to Mr. Dixit Rs.225 was posted twice to
Commission account. The rectification is done by –
Writing 'Error in Posting' Rs.225 on credit side of Mr. Dixit A/c in
Ledger
Passing a rectification entry in Journal Proper crediting
Commission A/c by Rs.225
Writing 'Error in Posting' Rs.225 on credit side of Commission A/c
in Ledger
Passing a rectification entry in Journal Proper debiting
Commission A/c by Rs. 225
C

26. Q.9. Rectification of which types of errors requires
opening of suspense A/c.
Errors of principle
Complete omission
Partial omission
Errors of commission
C

27. Q.10 Rs. 51000 received from Mohan but credited to Sohan
A/c. This is an error of __.
Errors of principle
Omission
Commission
Compensating
C

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