Rectification of Errors — Flashcards

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Rectification of errors means removing the effect of an error and arriving at the correct position. Errors may be corrected by direct posting, a rectifying journal entry, Suspense Account, or Profit a…

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If an error is located quickly in the journal, subsidiary books, or ledger posting, it may be corrected by neatly crossing out the wrong figure with a single line and writing the correct figure above …

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A rectifying journal entry is a journal entry passed to correct an error found after some time. It removes the effect of the mistake and records the missing or correct debit and credit.

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From the rectification point of view, errors are classified into two groups: two sided errors and one sided errors. Two sided errors do not affect the Trial Balance, while one sided errors affect the …

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An error which occurs simultaneously in two accounts, as one account is wrongly debited and another account is wrongly credited, is known as a two sided error. Such errors do not affect the Trial Bala…

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Two sided errors may include errors of omission, errors of commission, errors of principle, and compensating errors. These errors do not disturb the equality of the Trial Balance.

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Two sided errors are corrected through the journal following double entry principles. The account that was excess debited is credited, the account that was short-debited is debited, the account that w…

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The account that has been excess debited should be credited in the rectifying entry. This removes the extra debit created by the error.