Rectifying Entry for the Payment of Rupees 215 to Mohan Posted to His Credit of Rupees 125

To rectify the error of posting the payment of rupees 215 to Mohan's credit of rupees 125, we need to make a rectifying entry. This error indicates that the payment amount was understated by rupees 90.

1. Identify the Error
- The payment amount recorded in the books is rupees 125, which should have been rupees 215.

2. Determine the Rectifying Entry
To correct this error, we need to increase the payment amount by rupees 90. Since the payment was posted to Mohan's credit, we will reverse the entry and record it correctly by debiting Mohan's account.

3. Pass the Rectifying Entry
The rectifying entry will be as follows:

Debit: Mohan's Account - Rupees 90
Credit: Cash/Bank Account - Rupees 90

Explanation:
- By debiting Mohan's account with the correct payment amount of rupees 90, we are reversing the previous entry and correcting the error.
- By crediting the Cash/Bank account, we are reducing the balance in that account by the same amount to maintain the accounting equation.

4. Effect on Financial Statements
- Income Statement: There is no impact on the income statement as this error relates to the recording of a payment and not revenue or expenses.
- Balance Sheet: Mohan's account balance will be corrected by rupees 90, and the Cash/Bank account balance will decrease by the same amount.

5. Ensure Accuracy
- After passing the rectifying entry, it is important to verify the accuracy of the accounts affected and ensure that the books now reflect the correct payment amount of rupees 215.

By following the above steps and passing the rectifying entry, we can correct the error in recording the payment to Mohan's credit of rupees 125 and accurately reflect the payment amount of rupees 215.