Rectification of errors

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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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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Compensating errors

Compensating Errors – Definition In the case of compensating errors, we observe that one of the errors already committed being offset by another error or more than one errors. That means, compensating errors are caused due to the errors committed to compensate each other or offset each other. Explanation of Compensating Errors In fact, when …

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