To rectify the posting error where a bill receivable from Mr. A of Rs 1000 was mistakenly posted to the credit of the bills payable account and also credited to the account of Mr. A, a rectifying entry needs to be made. This rectifying entry will correct the error and ensure that the accounts reflect the accurate financial position.



The first step in rectifying the posting error is to identify the mistake. In this case, the error occurred when the bill receivable from Mr. A was wrongly posted to the credit side of the bills payable account instead of the debit side.



To correct the mistake, a rectifying entry needs to be made. Since the bill receivable from Mr. A was erroneously credited to the bills payable account, the rectifying entry will involve reversing this entry.



To reverse the incorrect entry, the bills payable account needs to be debited with the amount of Rs 1000. This will reduce the credit balance in the account and bring it back to its original state.



Next, Mr. A's account needs to be credited with the same amount of Rs 1000. This will correct the error made in the initial entry and reflect the accurate balance in his account.



The rectifying entry can be summarized in the following journal entry:

Bills Payable Account Dr. Rs 1000
To Mr. A's Account Cr. Rs 1000

This journal entry will reverse the incorrect posting and correct the balances in both the bills payable account and Mr. A's account.



After making the rectifying entry, it is important to verify the accuracy of the accounts and ensure that the balances are now correct. This can be done by cross-checking the transactions and reconciling the accounts.



Rectifying posting errors is essential to maintain accurate financial records. By identifying the mistake, determining the rectifying entry, and making the necessary adjustments, the error in posting the bill receivable from Mr. A can be corrected, and the accounts can reflect the correct financial position.