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In Nutshell

Stages

Method of rectification

Stage I - Before preparation of trial balance

 

One sided error – By posting only one aspect in the Respective account

Two sided error - Cancel Wrong Effect & Record Right Effect in Respective Account

Stage II -After preparation of trial balance, before preparing final accounts
 

One sided error – Debiting or crediting the respective account as against Suspense Account

Two sided error – Respective account

Stage III - After preparing final account




 

 

 

 

 

One sided error - Debiting or crediting the account

  • Profit & loss A/c Profit & Loss Adjustment A/c &Suspense A/c
  • Balance Sheet Respective A/c & Suspense A/c

Two sided error –

  • Profit & loss A/c Profit & Loss Adjustment A/c
  • Balance Sheet Respective A/c





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