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One sided errors

As only one side that is any one aspect either debit or credit is wrong, we have to rectify by increasing or decreasing only the wrong aspect.

 

Example: The Purchases book was under cast by ₹ 36

 

Dr. Purchase account Cr.

Date

Particulars

L.F.

Date

Particulars

L.F.

 

To mistake in totalling in page

 

36

 

 

 

 


Purchase is under casted means the total of purchase account is lower by ₹ 36. As Purchase is real account and the rule applicable is debit what comes in, so add to the purchase account

 

Illustration 1 [Rectification of errors of partial omission]

An accountant of a trading concern (dealing in Stationary) provides you the details of various errors discovered as follows:

  1. The debit side of ‘Whaman’ a debtor, was overcast by ₹ 3,500
  2. The total of Sales book carried forward was ₹ 6,500 less on page 5 and ₹ 7,000 more on page 7
  3. Total of Sales book ₹ 1,000 was omitted to be posted
  4. A credit sale to Walmiki, ₹ 9 was omitted to be postedto Wamiki’s account.
  5. A credit sale to Vincent, ₹ 9 was posted as ₹ 36 to Vincent’s account.
  6. A credit sale to Yamuna ₹ 9 was debited as ₹ 36 to Yamuna’s account
  7. A credit sale to Zafar ₹ 9 was credited as ₹ 36 to Zafar’s account.
  8. A cash sale to Mohanta ₹ 9 was omitted to be postedto sales account
  9. A cash sale to Suraj ₹ 9 was posted as ₹ 36 to sales account
  10. A cash sale to Pragati ₹ 9 was debited as ₹ 36 to sales account
  11. A cash sale to Madhu ₹ 9 was credited as ₹ 36 to sales account
  12. A credit sale of furniture to Munish for ₹ 30 was debited as ₹ 8 to Munish’s account
  13. A credit sale of furniture to Kunal for ₹ 30 was credited as ₹ 8 to Furniture account
  14. Please rectify the errors if it is found out before making the Trial Balance

Solution:
 

(a)

Dr.

Whaman’s Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Mistake in totalling on page......

3,500


(b)

Dr.

Sales Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

To Mistake in carrying forward on page 5 and 7...

500

 

 


(c)

Dr.

Sales Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Omission in Posting on.....

1,000


(d)

Dr.

Walmiki’s Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

By Omission in Posting on.....

9

 

 


(e)

Dr.

Vincent’s Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Mistake in posting on...

27


(f)

Dr.

Yamuna’s Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Mistake in posting on...

27


(g)

Dr.

Zafar’s Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

By Mistake in posting on...

45

 

 


(h)

Dr.

Sales Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Omission in posting on....

9


(i)

Dr.

Sales Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

By Mistake in posting on...

27

 

 


(j)

Dr.

Sales Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Mistake in posting on...

45


(k)

Dr.

Sales Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

By Mistake in posting on...

27

 

45


(l)

Dr.

Munish’s Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

By Mistake in posting on...

8

 

45


(m)

Dr.

Furniture Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

 

 

By Mistake in posting on...

22

Two sided error

Two sided error (like error of principle, error of commission, compensating errors) are rectified by cancelling the wrong effect and recoding the right effect in respective accounts.

 

The following procedure may be adopted to ascertain the rectifying entry:

 

Step 1: Write the wrong entry (i.e., entry which has already been passed in the books)

 

Step 2: Write the reverse of the wrong entry to nullify the effect of the wrong entry

 

Step 3: Write the correct entry (i.e., the entry which should have been passed in the books)

 

Step 4: Write the net effect of the reverse entry (as per Step 2) and the correct entry (as per step 3)

 

Example: ₹ 2,500 spent on white washing of building was charged to Building account.

 

Wrong Entry

Reverse of Wrong Entry

Correct Entry

Rectifying Entry

Building A/c Dr.

Cash A/c          Dr.

Building maintenance A/c          Dr.

Building maintenance A/c             Dr.

To Cash A/c

To Building A/c

To Cash A/c

To Building A/c


Illustration 2 [Rectification of errors of principle]

 

Pass the necessary journal entries to rectify the following errors:

  1. ₹ 1,500 paid as wages for the construction of office building debited to Salaries Account.
  2. ₹ 2,000 spent on the purchases of materials for the construction of office building debited to Purchases account.
  3. ₹ 5,000 spent on the extension of building was debited to Building Repairs account.
  4. ₹ 2,500 spent on white washing of building was charged to Building account.
  5. ₹ 100 paid as installation charges for a second hand purchased machinery posted to Cartage account.
  6. ₹ 1,000 paid as repairing charges on the reconditioning of second hand purchased machinery debited to General Expenses account.
  7. ₹ 500 paid as repairing charges of an existing machine in use charged to Machinery account.
  8. ₹ 1,000 paid by cash for a typewriter was charged to the Office Expenses account.

Solution:

 






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