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 …

Read moreRectification of errors

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 …

Read moreRectification of errors MCQs quiz

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 …

Read moreErrors affecting the trial balance

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 …

Read morePosting an entry on the wrong side of the ledger

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 …

Read moreFailure to post an entry to the ledger