Rectification Entry for the Shortage in Discount Column on the Debit Side of Cash Book

To rectify the error of adding short by Rs.40 in the discount column on the debit side of the cash book, the following rectification entry needs to be recorded:

Step 1: Identify the Error
The error in this case is that the total of the discount column on the debit side of the cash book has been added short by Rs.40.

Step 2: Determine the Correct Amount
To rectify the error, we need to determine the correct total of the discount column on the debit side of the cash book.

Step 3: Calculate the Correct Total
Since the total is short by Rs.40, we need to add Rs.40 to the total. Let's assume that the correct total of the discount column on the debit side of the cash book is Rs.X.

So, X + 40 = Correct Total

Step 4: Prepare the Rectification Entry
To rectify the error, we need to adjust the discount column on the debit side of the cash book by adding Rs.40. The rectification entry will be as follows:

Discount A/c Dr. 40
To Cash A/c 40

Step 5: Explanation of the Rectification Entry
- The rectification entry debits the Discount account with Rs.40 to correct the under-valuation of the discount column on the debit side of the cash book.
- The Cash account is credited with Rs.40 to balance the double-entry system.

Step 6: Posting the Rectification Entry
The rectification entry is then posted to the respective Discount and Cash accounts in the ledger.

Step 7: Re-calculate the Discount Column Total
After posting the rectification entry, the discount column on the debit side of the cash book should be re-calculated to ensure that the error has been rectified and the correct total is obtained.

By following the above steps, the error of adding short by Rs.40 in the discount column on the debit side of the cash book can be rectified.