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Stages of Detecting Error

Rectifying error depends largely on when the error is detected. Errors can be detected at any one of the following stages:

  • Stage 1 - Before preparation of Trial Balance
  • Stage 2 - After preparation of Trial Balance but before preparing final accounts
  • Stage 3 - After preparing final accounts i.e. in the next accounting period


  • Recorded means entry in the journal or subsidiary books and posting /crediting / debiting means entry from journal to ledgers
  • When entry is made in cash book, it is recording and posting, as cash book acts as principal book and ledger
  • Unless specified there cannot be wrong side entry (i.e. debit or credit aspect) in subsidiary book. Like in subsidiary book:
    • Purchase will always be debit aspect
    • Sales will always be a credit aspect
    • Purchase returns will always be credit aspect
    • Sales returns will always be a debit aspect
    • Bills receivable will always be debit aspect
    • Bills payable will always be credit aspect
  • Any cost incurred till the date a Fixed Asset is ready for use, is considered as a part of capital expenditure, namely, acquisition cost, installation cost, commissioning cost, etc. Hence, such cost must be debited to an asset account.

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