Rectification Entry for Goods Dispatched without Invoice
Rectification of the error of dispatching goods without invoicing is crucial to maintain accurate financial records. Here is a detailed explanation of the rectification entry for the scenario where goods worth Rs 940 were dispatched to a customer without an invoice being issued:

Identifying the Error:
The first step is to identify the error in dispatching goods without creating an invoice. This error can lead to discrepancies in the company's financial statements and may affect revenue recognition.

Rectifying the Error:
To rectify this error, a rectification entry needs to be recorded in the accounting books. The entry should include both the debit and credit aspects to ensure that the financial statements are balanced.

Rectification Entry:
In this case, the rectification entry would involve debiting the customer account for the value of the goods dispatched (Rs 940) and crediting the sales account to reflect the revenue generated from the sale.

Impact on Financial Statements:
By recording the rectification entry, the company's financial statements will now accurately reflect the revenue generated from the sale of goods. This ensures that the company's financial records are in line with the actual transactions that took place.

Preventing Future Errors:
To prevent similar errors in the future, it is important to establish proper internal controls and procedures for invoicing and dispatching goods. This can help prevent discrepancies and ensure the accuracy of the company's financial records.
In conclusion, rectifying the error of dispatching goods without invoicing is essential to maintain accurate financial records and ensure the integrity of the company's financial statements. By following the proper rectification process and implementing controls to prevent future errors, the company can maintain financial transparency and compliance.