Rectification of errors

What is the Rectification of errors? In accounting, errors are the ‘mistakes’ committed by the book-keeper or accountant. These mistakes may occur while classifying the accounts, writing the subsidiary books, posting the entries to ledger accounts, casting totals, balancing the accounts, carrying the balances forward and so on. The process of finding and correcting these …

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Rectification of errors MCQs quiz

We have prepared a test of Multiple Choice Questions (MCQs) for the chapter Rectification of errors to help students to prepare their exams and test their understandings. The rectification of errors MCQs quiz consists of 10 questions. Every question has 4 answers from which students need to choose the correct one. If you are facing any …

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Errors of principle

Errors of principle – Definition Errors of principle are caused due to a book-keeper’s or an accountant’s ignorance or improper understanding of principles of accounting. This error resembles error of commission, except in one respect. Errors of commission usually result in an oversight whereas an error of principle is caused by a lack of knowledge …

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Errors not affecting trial balance

This error can take several forms. Some examples are given below: A transaction may be entered in the subsidiary book at a wrong amount (error in original entry) and later debited or credited to a wrong account in ledger (error of commission). A capital expenditure may be treated as a revenue expenditure and at the …

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Errors affecting the trial balance

Which errors actually affect the trial balance? These errors usually involve only one account in any transaction. That account has either: an over-debit or an over-credit an under-debit or an under-credit To rectify an error that has affected the Trial Balance needs only one entry in the relevant account. This will bring the trial balance …

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Posting a wrong amount to the ledger

If a wrong amount is posted to ledger from the subsidiary book, the effect would be confined to that account only in the ledger. The total of the relevant subsidiary book, posted to ledger, would be correct and will not need rectification. Example A credit note for  $450 issued to David was recorded correctly in …

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Posting an entry on the wrong side of the ledger

If an entry is posted on the wrong side of the relevant ledger account, the effect would be that both the entries relating to the transaction would be on the same side of ledger, thereby causing the trial balance to go out of agreement. Example An invoice for $520 issued to Sara was entered correctly …

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Failure to post an entry to the ledger

When a transaction is recorded in the subsidiary book, it is posted to ledger by posting individual entries to personal accounts and the total to the relevant nominal account. Now if the total of the subsidiary book is posted to ledger but one (or more) of the individual entries are not posted from the subsidiary …

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