Rectification of error

CLASS 11
ACCOUNTS
 NOTES
RECTIFICATION OF ERROR
A matched the trial Balance (Debit = credit) is not a conclusive
proof of the complete correctness of Books of accounts.
even when the trial Balance matches, some errors may still
remains in accounting records.

Ex Not recording the entry.

→ credit transaction is recorded as cash transaction.
→ Amount undercast (both the side). and so on

Types of errors
Compensating errors (not
error of omission
affect T.B)
(bhul jaana)
↓
(partly or completely)
Effect of one error is nullified
↓ ↓ by another error
do affect does not Ram A/c is debited will 500
trial Affect trial instead 5000 and shyam A/c
balance Balance is debited with 5000 instead
of 500.
error of Commission error of principle
↓ ↓
wrong recording Contravention of Accounting principles
wrong casting ↓
wrong balancing Such as
wrong carry forward - revenue exp is charged as Capital exp.
(related to amt. ) - Asset purchase is recorded in
purchase Book etc.
↓
JOIN OUR YOUTUBE COMMUNITY
Not Affect T.B

ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
 NOTES
RECTIFICATION OF ERROR

Classification of errors

not affecting trial

Affecting
balance
trial balance or
or
one side errors
double sided errors
↓
it affect only 1 A/c
↓
more than one

Rectification of errors
1. Before making trial Balance.
i) One sided errors
These error affects Trial Balance.
If they are identified before making Trial Balance They can be
solved by giving an "Explanatory note".

errors which affects only 1 account can be

Balancing etc
Error of Casting
posting
carry forward

JOIN MODES
EMERGING OUR YOUTUBE COMMUNITY
OF BUSINESS BUISNESS)
CLICK HERE
ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
SAARE NOTES
EK SAATH
DOWNLOAD OUR MOBILE
APPLICATION NOW

www.thegauravjain.com
 NOTES
RECTIFICATION OF ERROR

They can be rectified through explanatory note by

Debiting the A/c in case of crediting the A/c in case of

short debit Short credit
Excess credit excess debit

Ex in Purchase Book, purchase has been undercast by 1000

Rectification → Purchase → Expense → Debit Balance

↓
In order to increase the Bal → Dr. it more by 1000
↓
Ans To undercasting of Purchase Book...... 1000

Ex Sales Book is overcast by 300

Rectification → Sales - Income - credit Balance

↓
overcast → excess credit balance
↓
in order to utilise → Dr. it by 300
↓
Ans To over casting of sales book ..... 200

JOIN OUR YOUTUBE COMMUNITY

ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
 NOTES
RECTIFICATION OF ERROR

ii) 2 sided errors / Affect for more A/c

Rectification process
1. write wrong entry
2. reverse (1)
3. write correct entry
4.Pass Journal which will be the net effect of 3 and reverse of
wrong entry (2)

Ex Machinery purchased - 1,00,000 on credit from Ram has been

entered into purchase Book.

Rectification

wrong entry Reverse correct entry

Purchase Mohan Mach
to Mohan to purchase to Mohan

Machinery
To purchase

SMALL BUISNESS AND EN. (BUSINESS)

JOIN OUR YOUTUBE COMMUNITY
CLICK HERE

ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
 NOTES
RECTIFICATION OF ERROR

Ex→ Cash sales - 1,700 to gaurav is recorded as 7,100

Rec
wrong correct

cash 7,100 cash 1,700

to sales 7,100 to Sales 1,700

Sales 5,400
ANSWER to cash 5,400

Ex- B/R of 8,100 from Shyam was recorded in Bills payable

book.

wrong correct
shyam 8,100 B/R 8,100
To B/P 8,100 To shyam 8,100

B/P 8,100
ANSWER B/R 8,100
To shyam 16,200

JOIN OUR YOUTUBE COMMUNITY

FOLLOW US ON INSTAGRAM
@gaurav_jainofficial
ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
 NOTES
RECTIFICATION OF ERROR

How to understand

Mistake Rectification correct

look at mistake & correct

Now, Pass entry that would cancel mistake and leads to correct
entry .

EX - 10,000 salary paid to Ram, debited to his personal A/c.

Mistake
Ram 10,000 correct
To Cash 10,000 Salary 10,000
To cash 10,000

Salary 10,000
To ram 10,000

JOIN OUR TELEGRAM

JOIN OURCHANNEL
YOUTUBE( GAURAV JAIN OFFICIAL )
COMMUNITY

FREE NOTES/PDF PRACTICE PAPER DAILY UPDATE

ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
SAARE NOTES
EK SAATH
DOWNLOAD OUR MOBILE
APPLICATION NOW

www.thegauravjain.com
 NOTES
RECTIFICATION OF ERROR

2. Rectification After preparation of Trial Balance

(Before final A/c &)

2 sided errors one sided errors

↓ ↓
Since these errors They Affects trial Balance.
does not affects the Balance which means the difference. is
of Trial Balance placed under the head
↓ "Suspense A/c"
No. suspense A/c is created. ↓
↓ They will be rectified through
Their treatment is same as of Journal entry
Before preparing Trial Balance. using suspense A/c.

(A) Suspense A/c

It refers to the A/c under which the difference in trial Balance

is temporarily placed (until reason is not known)
It shows the net effect of one sided errors.
↓
After treatment of one sided errors, their should not be any
balance in suspense A/c
(if all the errors are rectified)

JOIN OUR YOUTUBE COMMUNITY

PRICE DETERMINATION (ECONOMICS)

ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
 NOTES
RECTIFICATION OF ERROR

→ Ex → Sales book cast short by 1,000

→ without suspense A/c → with suspense A/c

By Short cast of sales Book.. 1000 Suspense A/c.......1000

To Sales A/c 1000

JOIN OUR YOUTUBE COMMUNITY

ECONOMICS ON YOUR TIPS COMMERCE CHAMPIONS ACCOUNTS ADDA

CLASS1111ACCOUNTS
CLASS ACCOUNTS
 NE SHOT
THE GAURAV JAIN

BEGINNER ADVANCED
RECTIFICATION OF ERROR CLASS 11
WHATSAPP CHANNEL FOR NOTES AND IMPORTANT QUESTIONS

7690041256
YE LE BAALAK ... MAUJ KAR

THE GAURAV JAIN 7690041256