Prepared by Dayal Dutt: 7042170441 RECTIFICATION OF ERRORS .

RECTIFICATION OF ERRORS

TYPES OF ERRORS
ERRORS NOT AFFECTING TRIAL BALANCE ERRORS AFFECTING TRIAL BALANCE
(TWO SIDED ERRORS ) (ONE SIDED ERRORS )
(1) ERROR OF OMISSION (FULL) (1) ERROR OF OMISSION
(a) Omitted to be recorded in original book. (a) Partial omission (forget to post in 1 account)
(b) Recorded in journal (Journal Proper) but omitted to be posted in (b) Omitting to show an account in the trail
Ledger completely (complete omission in posting) balance.
(2) ERROR OF PRINCIPAL
(a) Treated capital as revenue and vice versa. (2) ERROR OF COMMISSION
(b) Revenue /capital expenditure treated as personal account. (a) Errors of casting of subsidiary book
(3) COMPENSATORY ERRORS (b) Errors of balancing or totalling of an Account
(Ledger)
(4) ERROR OF COMMISSION (c) Error in carrying forward (ledger)
(a) When extra amount is recorded in Subsidiary Book & Journal. (d) Errors of posting
(Extra Debit & Extra Credit both) (i) Posting of wrong amount
(b) When less amount is recorded in Subsidiary Book & Journal. (ii) Posting to wrong side
(Less debit & Less credit both) (iii) Posting twice in 1 account (ledger)
(c) Entry in wrong book.
(d) Wrong recording in the books of original entry. (Wrong account)
(e) Error of duplication (in journal or subsidiary book)
(f) Posting in wrong account.

I Errors not affecting trial balance (2 sided errors) (Being Machinery Purchased were not recorded, now
recorded)
Error of omission (Fully) (5) Sales Return A/c Dr. 2,000
(a) Omitted to be recorded in original book. To Naresh’s A/c 2,000
(b) Recorded in journal (Journal Proper) but omitted to be posted (Being goods returned by Naresh not recorded in the
in Ledger completely (complete omission in posting) books now recorded)
Q1. (6) Purchases A/c Dr. 8,200
(1) Bought goods from ram ₹2,000 is omitted to be recorded in To Rajan’s A/c 8,200
the books of accounts. (Being goods purchased from Rajan not recorded in books
(2) Goods sold to M/S Amit for ₹1,200 is omitted to be recorded now recorded)
(were not recorded) (7) Advertisement A/c Dr. 500
(3) Goods sold to M/S Anil ₹1,200 but not recorded in the sales To Purchases A/c 500
book. (Being free sample distributed were not recorded, now
(4) Machinery purchased from ram ₹ 50,000 recorded in journal recorded)
proper but omitted to be posted. (8) Machinery A/c Dr. 1,60,000
(5) Goods worth ₹2000 returned by Naresh were taken into stock, To Cash A/c 1,60,000
but no entry was passed in the books. (Being Machinery Purchased were not recorded, now
(6) A credit purchase of goods worth ₹8,200 from Rajan was not recorded)
passed in day books.
(7) Goods costing ₹500 (sale price ₹600) distributed as free Error of principal
sample were not recorded at all. (a) Treated capital as revenue and vice versa.
(8) Machinery purchased ₹1,50,000 and paid wages ₹10,000 for (b) Revenue /capital expenditure treated as personal
erection, were not recorded at all. account.
Sol. Q2.
(1) Purchases A/c Dr. 2,000 (1) Purchase of machinery of ₹ 23,000 debited to wages.
To Ram’s A/c 2,000 (2) Sale of old furniture credited to sales account Rs 2,500.
(Being goods bought by Ram not recorded in the books, (3) Sale of old furniture ₹ 3,000 on credit recorded in the sales
now recorded) book.
(2) Amit’s A/c Dr. 1,200 (4) Bought Plant for ₹18,000 debited to purchases account.
To Sales A/c 1,200 (5) Bought goods ₹18,000 debited to plant account.
(Being goods sold to Amit not recorded, now recorded) (6) Paid ₹8000 as installation of machinery debited to wages
(3) Anil’s A/c Dr. 1,200 account.
To Sales A/c 1,200 (7) Wages paid for construction of office building debited to
(Being goods sold to Anil not recorded in sales books, now wages account ₹1,00,000.
recorded) (8) Rent paid to Landlord account ₹12,000 debited. (Paid rent ₹
(4) Machinery A/c Dr. 50,000 12,000 landlord debited to him).
To Ram A/c 50,000 (9) Receipts of ₹10,000 on account of specific fund credited as
income of business.

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 Prepared by Dayal Dutt: 7042170441 RECTIFICATION OF ERRORS .2

(10) Receipts of ₹12,000 on account of Interest on investment To Purchases A/c 1,000

wrongly treated as capital. (3) Garima’s A/c Dr. 900
(11) Salary paid to accountant (Mr. Ram) of ₹15,000 was debited To Akash 900
to Ram A/c. (4) Pooja’s A/c Dr. 540
(12) ₹ 32,000 paid for purchase of computer was charged to office To Pankaj 540
expense account. (5) Mohan’s A/c Dr. 900
(13) Amount ₹7,500 withdrawn by proprietor was debited to To Sohan 900
miscellaneous expenses account.
(14) Sale of old machinery for ₹1,200 has been credited to Sales Error of Commission
A/c. (a) When extra amount is recorded in Subsidiary Book & Journal.
(15) Machinery purchased for ₹20,000 was passed as Purchases. (Extra Debit & Extra Credit both)
(16) Repairs made on Building for ₹50,000 were debited to (b) When less amount is recorded in Subsidiary Book & Journal.
Building A/c. (Less debit & Less credit both)
Sol. (c) Entry in wrong subsidiary book.
(1) Machinery A/c Dr. 23,000 (d) Wrong recording in the books of original entry. (Wrong
To Wages A/c 23,000 account in journal)
(2) Sales A/c Dr. 2,500 (e) Error of duplication.
To Furniture A/c 2,500
(3) Sales A/c Dr. 3,000 Q4.
To Furniture A/c 3,000 (1) Bought goods from Amar ₹ 2000 is recorded twice
(4) Plant A/c Dr. 18,000 (Duplication).
To Purchases A/c 18,000 (2) Goods returned by Raman ₹ 400 is recorded twice.
(5) Purchases A/c Dr. 18,000 (3) Bought goods from ram ₹ 250 is recorded as ₹ 520 (Extra
To Plant A/c 18,000 recorded)
(6) Machinery A/c Dr. 8,000 (4) Sold goods to Amar ₹ 1500 was recorded as ₹ 5100.
To Wages A/c 8,000 (5) Bought goods from Mohan for ₹610 is recorded as ₹ 160 (less
(7) Building A/c Dr. 1,00,000 recorded)
To wages A/c 1,00,000 (6) Sold goods to Mohan ₹ 5100 recorded as ₹ 1500.
(8) Rent A/c Dr. 12,000 Sol.
To Landlord A/c 12,000 (1) Amar A/c Dr. 2,000
(Being correction of wrong debit of rent to landlord To Purchases A/c 2,000
account) (2) Raman A/c Dr. 400
(9) Business Income Dr. 10,000 To Sales Return A/c 400
To Specific Fund 10,000 (3) Ram’s A/c Dr. 270
(10) Capital A/c Dr. 12,000 To Purchases A/c 270
To Interest on investment A/c 12,000 (4) Sales A/c Dr. 3,600
(11) Salary A/c Dr. 15000 To Amar 3,600
To Ram’s A/c 15,000 (5) Purchases A/c Dr. 450
(12) Computer A/c Dr. 32,000 To Mohan 450
To Office Expenses A/c 32,000 (6) Mohan’s A/c Dr. 3,600
(13) Drawing A/c Dr. 7,500 To Sales 3,600
To miscellaneous expenses A/c 7,500
(14) Sales A/c Dr. 1,200 Entry in wrong subsidiary book.
To Machinery A/c 1,200 (1) Bought goods from Amar ₹ 3,000 was recorded in sales book.
(15) Machinery A/c Dr. 20,000 (2) Goods returned to Ram ₹ 2,000 were recorded in sales return
To Purchase A/c 20,000 book.
(16) Repairs A/c Dr. 50,000 (3) Goods returned by Mohan ₹ 600 were recorded in purchases
To Building A/c 50,000 return book.
(4) Received cash ₹ 1,500 from Arun was credited to (Recorded
Compensatory errors as) Varun.
Q3. (5) A credit purchase of ₹ 560 from Rakesh was recorded as
(1) Purchases book is undercast by ₹ 100 and sales book is also purchases from Rajesh.
undercast by ₹ 100. (6) Sold goods to Geeta ₹ 4,000 was recorded in purchases book.
(2) Sales book is overcast by ₹ 1,000 and purchase book is also (7) Goods returned to Ram ₹ 1,000 is recorded in the sales book.
overcast by ₹ 1,000. (8) Goods returned by Sohan ₹ 500 were recorded in the
(3) A sum of ₹ 1,000 received from Akash were recorded as ₹100 purchases book.
and ₹100 received from Garima were recorded as ₹ 1,000. Sol.
(4) ₹ 600 paid to pooja were recorded as ₹60 and ₹60 paid to (1) Purchases A/c Dr. 3,000
Pankaj were recorded as ₹600. Sales A/c Dr. 3,000
(5) Mohan’s Account was debited with ₹ 100 instead of ₹ 1,000 To Amar A/c 6,000
while Sohan’s Account was debited with ₹ 1,000 instead of ₹ (Bought goods from Amar ₹ 3,000 recorded in sales book,
100. now corrected)
Sol. (2) Ram’s A/c Dr. 4,000
(1) Purchases A/c Dr. 100 To Purchases Return A/c 2,000
To Sales A/c 100 To Sales Return A/c 2,000
(2) Sales A/c Dr. 1,000 (Goods returned to Ram ₹ 2,000 recorded in sales return
book, now corrected)

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 Prepared by Dayal Dutt: 7042170441 RECTIFICATION OF ERRORS .3

(3) Purchases Return A/c Dr. 600 (12) An amount of ₹ 2,000 due to Mohan Chand which had been
Sales Return A/c Dr. 600 written off as a bad debt in Previous year was unexpectedly
To Mohan’s A/c 1,200 recovered and has been posted to A/c of Mahesh Chand.
(Goods returned by Mohan ₹ 600 recorded in purchases (13) A cheque for ₹ 1,000 received from Man Mohan was
return book, now corrected) dishonoured and had been posted to debit of sales return A/c.
(4) Varun’s A/c Dr. 1,500 Sol.
To Arun’s A/c 1,500 (1) Mahesh’s A/c Dr. 1,000
(5) Rajesh’s A/c Dr. 560 To Sales Return A/c 1,000
To Rakesh’s A/c 560 (2) Kavita’s A/c Dr. 500
(6) Geeta’s A/c Dr. 8,000 To Sales A/c 500
To Sales A/c 4,000 (3) Harpreet’s A/c Dr. 1,500
To Purchases A/c 4,000 To Harjeet’s A/c 1,500
(Sold goods to Geeta ₹ 4,000 was recorded in purchases (4) Nishant’s A/c Dr. 3,500
book, now corrected) To Rohan’s A/c 3,500
(7) Sales A/c Dr. 1,000 (5) Furniture A/c Dr. 3,000
To Purchase Return A/c 1,000 To Machinery A/c 3,000
(Goods returned to Ram ₹ 1,000 is recorded in the sales (6) Krishan’s A/c Dr. 1,700
book, now corrected) To Kishan’s A/c 1,700
(8) Sales Return A/c Dr. 500 (7)
To Purchase A/c 500 (8)
(Goods returned by Sohan ₹ 500 were recorded in the (9)
purchases book, now corrected) (10)
(11)
(12) Mahesh Chand’s A/c Dr. 1,700
Wrong amount and wrong account Either in subsidiary books or in To Bad-debt Recovered A/c 1,700
journal. (13)
(1) Credit sale of ₹ 1,700 to Mohan was recorded as sales to
Krishnan.
(2) Credit sale of ₹ 1,700 to Asha was recorded as sales to Anshul
II Errors Which Affect THE Trial Balance (1 sided errors)
as ₹ 7,100.
(3) A purchase of goods from Ram ₹1500 has been wrongly
Q1. Rectify the following errors which were detected before
passed through the sales book.
making the trail balance.
Sol.
(1) Purchases book has been overcast by ₹ 650.
(1) Mohan’s A/c Dr. 1,700
(2) A discount of ₹ 100 allowed to Charu has not been posted to
To Krishnan A/c 1,700
his account.
(2) Asha A/c Dr. 1,700
(3) Sales return book of ₹ 2500 has not been posted to sales
Sales A/c Dr. 5,400
return a/c.
To Anshul A/c 7,100
(4) A payment of ₹ 500 as repairs has been debited to repairs
(3) Purchase A/c Dr. 1,500 account twice.
Sales A/c Dr. 1,500
(5) Goods purchased from Rakesh for ₹ 4600 on credit has been
To Ram A/c 3,000 correctly entered in the purchases book but it has been
debited to his account as ₹ 460.
Error of posting to wrong account but on correct side. (Assume (6) Returns outward book of ₹ 3560 has been posted to return
that correct recording in the books, but posted to wrong A/c) outward account as ₹ 560.
(1) A cheque of ₹ 1,000 received from Mahesh was dishonoured (7) ₹ 9500 paid to Keshav was posted to credit of his account.
and has been posted to the debit of sales return A/c. Sol.
(2) A cash sale of ₹ 500 to Savita was posted to the credit of (1)
Kavita.
(2)
(3) A credit sale of ₹ 1,500 to Harpreet was posted to Harjeet’s
(3)
A/c.
(4)
(4) Furniture purchased on credit from Rohan for ₹ 3,500 posted
(5)
to Nishan’s A/c.
(5) Furniture purchased on credit from Rohan for ₹ 3,000 posted (6)
to machinery A/c.
(6) Credit sale of ₹ 1,700 to Krishan was posted to Kishan’s A/c. Q2. Rectify the following errors which were detected after making
(7) Cash sale of ₹ 1,700 to Meena was posted to the credit of the trail balance.
Meena. Sol.
(8) Credit sale of old furniture to Prem for ₹ 1,700 was credited to
the sales A/c.
(9) Credit sale of old furniture to Rohan for ₹ 1,700 was posted as
₹ 7,100.
(10) ₹ 100 paid as cartage for newly purchased machinery, posted
to cartage A/c.
(11) Goods sold Shabir for ₹ 10,500 on credit. Instead of posting on
the debit side of Shabir’s A/c, it has been posted to the debit
side of Kabir’s A/c.

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