Rectification of Errors Class 11

Rectification of Errors involves rectifying wrong or incorrect entries in books of accounts. Such errors could be : –

• Errors of omission,
• Errors of principle or
• Errors of commission.

RECTIFICATION OF ERRORS OF RECORDING

Recording of Transaction in Wrong Account

In certain cases, while making the entries in the books of accounts, a particular payment or receipt, may be debited or credited to wrong party. In such a case, the process of rectification of entry can be understood with the help of the following example.

Question 1:

What would be the Rectification entry for following error : –

A credit sales of Rs. 1,450 to Rohan was recorded as sales to Mayur ?

Explanation:  

The correct entry that should have been made for Sale to Rohan would have been as under : –

Rohan A/c Dr. 1,450
To Sales A/c 1,450

The incorrect entry that has been made for Sale to Rohan ,  is as under : –

• Sales A/c  has  been credited wrongly by Rs. 9000 (10000-1000). So in  the correct entry  we would debit Sales A/c   by Rs. 9000

RECTIFICATION OF ERRORS – Recording of Transaction from Excess Amount

Question 3:

Which is the correct Rectification entry for following error.

A credit sales of Rs. 1,100 to Akash was recorded as Rs. 11,000 .

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Akash A/c Dr. 11,000
To Sales A/c 11,000

CORRECT ENTRY FOR GIVEN TRANSACTION

Akash A/c Dr. 1,100
To Sales A/c 1,100

REVERSAL ENTRY TO RECTIFY ERROR

Sales A/c Dr. 9,900 ( 11,000 (-)1,100 )
To Akash A/c 9,900

RECTIFICATION OF ERRORS – Purchase of Assets & Posted in Wrong Account

Question 4:

Which is the correct Rectification entry for following error.

Equipment purchased on credit from Atul for Rs. 6,000 Posted to Machinery Account.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Machinery A/c Dr. 6,000
To Atul A/c 6,000

CORRECT ENTRY FOR GIVEN TRANSACTION

Furniture A/c Dr. 6,000
To Atul A/c 6,000

REVERSAL ENTRY TO RECTIFY ERROR

Equipment A/c Dr. 6,000
To Machinery A/c 6,000

Note: Furniture A/c which should have been debited by Rs. 6,000 was not debited. It is now rectified through a debit of Rs. 6,000 To Furniture A/c
Further Machinery A/c Which was wrongly debited by Rs. 6,000 , now rectified through a credit of Rs. 6,000 To Machinery A/c

RECTIFICATION OF ERRORS  – Purchase of Assets on Credit & Recorded in Wrong Account

Question 5:

Which is the correct Rectification entry for following error.

Furniture purchased on credit from Akash for Rs. 20000 Posted to Vinod Account.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Furniture A/c Dr. 20000
To Vinod A/c 20000

CORRECT ENTRY FOR GIVEN TRANSACTION

Furniture A/c Dr. 20000
To Akash A/c 20000

REVERSAL ENTRY TO RECTIFY ERROR

RECTIFICATION OF ERRORS OF PRINCIPLE – CAPITAL EXPENDITURE RECORDED AS REVENUE EXPENDITURE

Question 6:

Which is the correct Rectification entry for following error.

Paid cartage for the newly purchased Machine of Rs. 1200 , posted to the cartage account.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Cartage A/c Dr. 1200
To Cartage payable A/c 1200

CORRECT ENTRY FOR GIVEN TRANSACTION

Machine A/c Dr. 1200
To Cartage payable A/c 1200

REVERSAL ENTRY TO RECTIFY ERROR

Machine A/c Dr. 1200
To Cartage A/c 1200

Note: Cartage A/c Which was wrongly debited by Rs. 1200 , now rectified through a credit of Rs. 1200 To Cartage A/c

Further Machine A/c which should have been debited was not debited. It is now rectified through a debit of Rs. 1200 To Machine A/c
Note: (Cartage paid for purchase of Machine Should be debited to Machine account because it is a capital expenditure.)

RECTIFICATION OF ERRORS OF PRINCIPLE – PURCHASE OF ASSET WRONGLY DEBITED TO PURCHASES ACCOUNT

Question 7:

Which is the correct Rectification entry for following error.

Purchased Equipment for Rs. 20000 was passed through purchases book.

Explanation:

Purchases A/c Dr. 20000
To Bank A/c 20000

CORRECT ENTRY FOR GIVEN TRANSACTION

Equipment A/c Dr. 20000
To Bank A/c 20000

REVERSAL ENTRY TO RECTIFY ERROR

Equipment A/c Dr. 20000
To Purchases A/c 20000

Note: Since Purchases A/c was wrongly debited by Rs. 20000 ,it is now rectified through a credit of Rs. 20000 To Purchases A/c

Further Equipment A/c which should have been debited was not debited. It is now rectified through a debit of Rs. 20000 To Equipment A/c

RECTIFICATION OF ERRORS OF PRINCIPLE-PURCHASE OF OFFICE EQUIPMENT WRONGLY POSTED TO THE PURCHASES ACCOUNT

Question 8:

Which is the correct Rectification entry for following error.

Paid Rs. 2000 For newly purchased Table fan posted to purchases account.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Purchases A/c Dr. 2000
To Bank A/c 2000

CORRECT ENTRY FOR GIVEN TRANSACTION

Office Equipment A/c Dr. 2000
To Bank A/c 2000

REVERSAL ENTRY TO RECTIFY ERROR

Office Equipment A/c Dr. 2000
To Purchases A/c 2000

Note: Since Purchases A/c was wrongly debited by Rs. 2000 ,it is now rectified through a credit of Rs. 2000 To Purchases A/c

Further Office Equipment A/c which should have been debited was not debited. It is now rectified through a debit of Rs. 2000 To Office Equipment A/c

RECTIFICATION OF ERRORS  OF OMISSION-SALE OF FURNITURE OMITTED TO BE POSTED IN THE LEDGER

Question 9:

Which is the correct Rectification entry for following error.

A credit sale of old furniture to Akash for Rs. 1500 omitted to be posted in the Ledger.

Explanation:

No entry is required to be passed now as it is assumed that the correct entry has been passed in the journal.
Merely posting in both the accounts in the ledger is required.

RECTIFICATION OF ERRORS OF OMISSION-GOODS RETURNED BY THE CUSTOMER AND TAKEN INTO STOCK BUT NO ENTRY RECORDED IN THE BOOKS

Question:

Which is the correct Rectification entry for following error.

On 31st March 2016 goods of the value of Rs. 10000 were returned by Anil and were taken into stock on the same date but no entry was passed in the books.

Explanation:

Rectifying entry would we:

Return inwards A/c Dr. 10000
To Anil A/c 10000

Note: In this case, since no entry was passed at the time of return of goods, the Entry that would have been passed for goods return by the customer now be passed.

RECTIFICATION OF ERRORS OF OMISSION- CREDIT SALES TO CUSTOMER NOT RECORDED IN THE BOOKS

Question 10:

Which is the correct Rectification entry for following error.

A credit sales of Rs. 12000 to Tarun omitted to be recorded in the books.

Explanation:

Rectifying entry would we:

Tarun A/c Dr. 12000
To Sales A/c 12000

Note: In this case, since no entry was passed earlier, the Entry that would have been passed for sale of goods on credit should now be passed.

RECTIFICATION OF ERRORS OF OMISSION-AMOUNT RECORDED IN WRONG ACCOUNT

Question 11:

Which is the correct Rectification entry for following error.

Rs. 1000 received from Arun & Co. Has been wrongly entered as from Varun & Co.

Explanation:

Bank A/c Dr. 1000
To Arun & Co. A/c 1000

REVERSAL ENTRY TO RECTIFY ERROR

Varun & Co. A/c Dr. 1000
To Arun & Co. A/c 1000

Note: Since Varun & Co. was wrongly credited by Rs. 1000 ,it is now rectified through a debit of Rs. 1000 To Varun & Co.

Further Arun & Co. which should have been credited was not credited. It is now rectified through a credit of Rs. 1000 To Arun & Co.

RECTIFICATION OF ERRORS OF OMISSION-GOODS TAKEN BY THE PROPRIETOR NOT RECORDED IN THE BOOKS

Question 12:

Which is the correct Rectification entry for following error.

Goods costing Rs. 1200 , Sales price Rs. 1440 taken by the proprietor were not recorded anywhere.

Explanation:

Rectifying entry would we:

Drawings A/c Dr. 1200
To Purchases A/c 1200

Note: In this case, since no entry was passed earlier, the Entry that would have been passed for goods taken by the proprietor should now be passed.

RECTIFICATION OF ERRORS OF PRINCIPLE-CAPITAL EXPENDITURE RECORDED AS REVENUE EXPENDITURE

Question 13:

Which is the correct Rectification entry for following error in the Journal ?

Paid wages for the construction of office debited to the wages account Rs. 10000 .

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Wages A/c Dr. 10000
To Wages payable A/c 10000

CORRECT ENTRY FOR GIVEN TRANSACTION

Building A/c Dr. 10000
To Wages payable A/c 10000

REVERSAL ENTRY TO RECTIFY ERROR

Building A/c Dr. 10000
To Wages A/c 10000

Note: Wages A/c Which was wrongly debited by Rs. 10000 , now rectified through a credit of Rs. 10000 To Wages A/c

Further Building A/c which should have been debited was not debited. It is now rectified through a debit of Rs. 10000 To Building A/c
Note: (Wages paid for the construction of office Should be debited to Building account because it is a capital expenditure.)

RECTIFICATION OF ERRORS OF OMISSION- CREDIT SALES TO CUSTOMER NOT RECORDED IN THE BOOKS

Question 14:

Which is the correct Rectification entry for following error.

A credit sales of Rs. 12000 to Tarun omitted to be recorded in the books.

Explanation:

Rectifying entry would we:

Tarun A/c Dr. 12000
To Sales A/c 12000

Note: In this case, since no entry was passed earlier, the Entry that would have been passed for sale of goods on credit should now be passed.

RECTIFICATION OF ERRORS OF OMISSION-AMOUNT RECORDED IN WRONG ACCOUNT

Question 15:

Which is the correct Rectification entry for following error.

Rs. 1000 received from Arun & Co. Has been wrongly entered as from Varun & Co.

Explanation:

Bank A/c Dr. 1000
To Arun & Co. A/c 1000

REVERSAL ENTRY TO RECTIFY ERROR

Varun & Co. A/c Dr. 1000
To Arun & Co. A/c 1000

Note: Since Varun & Co. was wrongly credited by Rs. 1000 ,it is now rectified through a debit of Rs. 1000 To Varun & Co.

Further Arun & Co. which should have been credited was not credited. It is now rectified through a credit of Rs. 1000 To Arun & Co.

RECTIFICATION OF ERRORS OF OMISSION-RECOVERY OF BAD DEBTS

Question 16:

Which is the correct Rectification entry for following error.

An amount of Rs. 1500 Due from Mahesh which had been written off as a bad debt in previous
year was unexpectedly recovered and has been posted to the personal account of Mahesh .

Explanation:

Rectifying entry would we:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Bank A/c Dr. 1500
To Mahesh A/c 1500

CORRECT ENTRY FOR GIVEN TRANSACTION

Bank A/c Dr. 1500
To Bad Debts recovered A/c 1500

REVERSAL ENTRY TO RECTIFY ERROR

Mahesh A/c Dr. 1500
To Bad Debts recovered 1500

Note: Since Mahesh A/c was wrongly credited by Rs. 1500 ,it is now rectified through a debit of Rs. 1500 To Mahesh A/c
Note: Further Bad Debts recovered A/c which should have been credited was not credited. It is now rectified through a credit of Rs. 1500 To Bad Debts recovered A/c

RECTIFICATION OF ERRORS OF OMISSION-DISHONOURED OF CHEQUE WRONGLY RECORDED IN SALES RETURN ACCOUNT

Question 17:

Which is the correct Rectification entry for following error.

A cheque for Rs. 1000 received from Arvind Was dishonoured and had been posted to the debit of the sales Return account.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Sales return A/c Dr. 1000
To Bank A/c 1000

CORRECT ENTRY FOR GIVEN TRANSACTION

Arvind A/c Dr. 1000
To Bank A/c 1000

REVERSAL ENTRY TO RECTIFY ERROR

Arvind A/c Dr. 1000
To Sales return A/c 1000

Note: Since Sales return A/c was wrongly debited by Rs. 1000 ,it is now rectified through a credit of Rs. 1000 To Sales return A/c
Note: Further Arvind A/c which should have been debited was not debited. It is now rectified through a debit of Rs. 1000 To Arvind A/c

RECTIFICATION OF ERRORS OF OMISSION- PURCHASES OF GOODS WRONGLY RECORDED IN SALES ACCOUNT

Question 18:

Which is the correct Rectification entry for following error.

A purchase of goods from Akash amounting to Rs 900 has been wrongly passed through the sales book.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Akash A/c Dr. 900
To Sales A/c 900

CORRECT ENTRY FOR GIVEN TRANSACTION

Purchases A/c Dr. 900
To Akash A/c 900

REVERSAL ENTRY TO RECTIFY ERROR

Purchases A/c Dr. 900
Sales A/c Dr. 900
To Akash A/c 1800

Note: Since Sales A/c was wrongly credited by Rs. 900 ,it is now rectified through a debit of Rs. 900 To Sales A/c
Further Purchases A/c which should have been debited was not debited. It is now rectified through a debit of Rs. 900 To Purchases A/c
Further Akash A/c which should have been credited was not credited and wrongly debited by Rs. 900 ,it is now rectified through a credit of Rs. 1800 To Akash A/c

RECTIFICATION OF ERRORS OF OMISSION-GOODS RETURNED BY CUSTOMER, ENTERED INTO PURCHASE RETURN BOOK

Question 19:

Which is the correct Rectification entry for following error.

A return of goods worth Rs. 1000 by Ajay was entered in the purchased return book.

Explanation:

REVERSAL ENTRY TO RECTIFY ERROR
Purchases return A/c Dr. 1000
Sales Return A/c Dr. 1000
To Ajay A/c 2000

Since Ajay A/c which should have been credited was not credited and wrongly debited by Rs. 1000 ,it is now rectified through a credit of Rs. 2000 To Ajay A/c
Further Sales return A/c which should have been debited ,it is now rectified through a debit of Rs. 1000 To Sales return A/c
Further Purchase return A/c which was wrongly credited by Rs. 1000 ,it is now rectified through a debit of Rs. 1000 To Purchase return A/c

RECTIFICATION OF ERRORS OF OMISSION-GOODS GIVEN AS SAMPLE NOT RECORDED IN BOOKS

Question 20:

Which is the correct Rectification entry for following error.

Goods costing Rs. 10000 ,Sales price Rs. 12000 ,distributed as a free sample were not recorded anywhere.

Explanation:

The rectifying entry would be

Free sample A/c Dr. 10000
To Purchases A/c 10000

Note: In this case, since no entry was passed earlier, the Entry that would have been passed for distribution of goods as a free sample should now be passed.
Purchases account is credited because goods are distributed as free sample (i.e. without any cost)

RECTIFICATION OF ERRORS  -EXCESSIVE CREDIT TO SALES A/C – SUSPENSE A/C USE TO RECTIFY THE ERROR

Question 21:

Which is the correct Rectification entry for following error.

The sales book was overcast by Rs. 1000 .

Explanation:

The rectifying entry would be

Sales A/c Dr. 1000
To Suspense A/c 1000

Note: Sales A/c, which was excessively credited by Rs. 1000 now rectified.
Since we do not know, which corresponding account was debited when sales were credited at the time of the original entry, we have assumed that the account which was debited was Suspense A/c. Hence the credit has been made to Suspense A/c

RECTIFICATION OF ERRORS – PAYMENT TO SUPPLIER AND WRONGLY DEBITED TO PURCHASES ACCOUNT

Question 22:

Which is the correct Rectification entry for following error.

A cheque of Rs. 1050 issued to the supplier account (shown under sundry creditors)
towards his due had been wrongly debited to the purchases account.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Purchases A/c Dr. 1050
To Bank A/c 1050

CORRECT ENTRY FOR GIVEN TRANSACTION

Sundry creditors A/c Dr. 1050
To Bank A/c 1050

REVERSAL ENTRY TO RECTIFY ERROR
Sundry creditors A/c Dr. 1050
To Purchases A/c 1050

Note: Since Sundry creditors A/c which should have been debited by Rs. 1050 was not debited. It is now rectified through a debit of Rs. 1050 To Sundry creditors A/c
Further Purchases A/c which was wrongly debited by Rs. 1050 ,it is now rectified through a credit of Rs. 1050 To Purchases A/c

RECTIFICATION OF ERRORS OF PRINCIPLE-CASH SALES SHOWN AS COMMISSION RECEIVED

Question 23:

Which is the correct Rectification entry for following error.

Cash sales to Akash Rs. 4000 was wrongly recorded as receipt of Interest in the cash book.

Explanation:

INCORRECT ENTRY PASSED IN BOOKS OF ACCOUNTS

Cash A/c Dr. 4000
To Interest A/c 4000

CORRECT ENTRY FOR GIVEN TRANSACTION

Cash A/c Dr. 4000
To sales A/c 4000

REVERSAL ENTRY TO RECTIFY ERROR
Interest A/c Dr. 4000
To sales A/c 4000

Note: Since sales A/c which should have been credited by Rs. 4000 was not credited. It is now rectified through a credit of Rs. 4000 To sales A/c
Further Interest A/c which was wrongly credited by Rs. 4000 ,it is now rectified through a debit of Rs. 4000 To Interest A/c

Chapter 6 -Trial Balance and Rectification of Errors

1. Meaning of Trial Balance
2. Objectives of Preparing the Trial Balance
3. Preparation of Trial Balance – Trial Balance Questions
4. Significance of Agreement of Trial Balance
5. Searching of Errors
6. Rectification of Errors