SSC CGL Exam  >  SSC CGL Notes  >  SSC CGL Tier 2 - Study Material, Online Tests, Previous Year  >  PPT - Rectification of Errors

PPT - Rectification of Errors | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year PDF Download

Download, print and study this document offline
Please wait while the PDF view is loading
 Page 2


    
Introduction
•
When the business transactions are recorded in the books of 
accounts there remains a possibility of accounting errors. It may 
be because of hastiness in writing, negligence, oversight or 
incomplete knowledge of the principles of accountancy. Some 
times in order to manipulate the books of accounts, errors are 
committed intentionally. 
•
Irrespective of whether the accounting errors are committed 
innocently or intentionally they cannot be rectified by erasing with 
the help of an eraser. Necessary accounting effects are to be given 
in accounts in order to rectify these errors. Sometimes in an error 
affects two accounts, in order to rectify the same, a journal entry is 
passed which is known as a rectification entry and it is recorded in 
journal proper.
•
Generally two principles should be taken into consideration to 
rectify the accounting errors.
  Undo what is wrong
Do what is correct.
•
Let us understand this point with the help of an illustration. 
Page 3


    
Introduction
•
When the business transactions are recorded in the books of 
accounts there remains a possibility of accounting errors. It may 
be because of hastiness in writing, negligence, oversight or 
incomplete knowledge of the principles of accountancy. Some 
times in order to manipulate the books of accounts, errors are 
committed intentionally. 
•
Irrespective of whether the accounting errors are committed 
innocently or intentionally they cannot be rectified by erasing with 
the help of an eraser. Necessary accounting effects are to be given 
in accounts in order to rectify these errors. Sometimes in an error 
affects two accounts, in order to rectify the same, a journal entry is 
passed which is known as a rectification entry and it is recorded in 
journal proper.
•
Generally two principles should be taken into consideration to 
rectify the accounting errors.
  Undo what is wrong
Do what is correct.
•
Let us understand this point with the help of an illustration. 
  
Rs.1,000 received from Akash is credited in the account of 
Vikash. To nullify the effect of wrong credit to Vikash’s account, 
debit his account by Rs.1000. (Undo what is wrong). Give 
correct effect for the omission of a credit of Rs 1,000 to Akash’s 
account. (Do what is correct) Necessary rectification entry will 
be written as under.
Date Particulars
L.
F.
Debit
Rs.
Credit
Rs.
Vikash’s A/c…………………………Dr.
             To Akash’s A/c
(Being the rectification of Rs.1,000 
received from Akash  wrongly 
credited to Vikash’s account.)
1,000 
1,000
Page 4


    
Introduction
•
When the business transactions are recorded in the books of 
accounts there remains a possibility of accounting errors. It may 
be because of hastiness in writing, negligence, oversight or 
incomplete knowledge of the principles of accountancy. Some 
times in order to manipulate the books of accounts, errors are 
committed intentionally. 
•
Irrespective of whether the accounting errors are committed 
innocently or intentionally they cannot be rectified by erasing with 
the help of an eraser. Necessary accounting effects are to be given 
in accounts in order to rectify these errors. Sometimes in an error 
affects two accounts, in order to rectify the same, a journal entry is 
passed which is known as a rectification entry and it is recorded in 
journal proper.
•
Generally two principles should be taken into consideration to 
rectify the accounting errors.
  Undo what is wrong
Do what is correct.
•
Let us understand this point with the help of an illustration. 
  
Rs.1,000 received from Akash is credited in the account of 
Vikash. To nullify the effect of wrong credit to Vikash’s account, 
debit his account by Rs.1000. (Undo what is wrong). Give 
correct effect for the omission of a credit of Rs 1,000 to Akash’s 
account. (Do what is correct) Necessary rectification entry will 
be written as under.
Date Particulars
L.
F.
Debit
Rs.
Credit
Rs.
Vikash’s A/c…………………………Dr.
             To Akash’s A/c
(Being the rectification of Rs.1,000 
received from Akash  wrongly 
credited to Vikash’s account.)
1,000 
1,000
  
TYPES OF ACCOUNTING ERROR:
•
Errors which do not affect the trial balance.
•
Errors which affect the trial balance.
Page 5


    
Introduction
•
When the business transactions are recorded in the books of 
accounts there remains a possibility of accounting errors. It may 
be because of hastiness in writing, negligence, oversight or 
incomplete knowledge of the principles of accountancy. Some 
times in order to manipulate the books of accounts, errors are 
committed intentionally. 
•
Irrespective of whether the accounting errors are committed 
innocently or intentionally they cannot be rectified by erasing with 
the help of an eraser. Necessary accounting effects are to be given 
in accounts in order to rectify these errors. Sometimes in an error 
affects two accounts, in order to rectify the same, a journal entry is 
passed which is known as a rectification entry and it is recorded in 
journal proper.
•
Generally two principles should be taken into consideration to 
rectify the accounting errors.
  Undo what is wrong
Do what is correct.
•
Let us understand this point with the help of an illustration. 
  
Rs.1,000 received from Akash is credited in the account of 
Vikash. To nullify the effect of wrong credit to Vikash’s account, 
debit his account by Rs.1000. (Undo what is wrong). Give 
correct effect for the omission of a credit of Rs 1,000 to Akash’s 
account. (Do what is correct) Necessary rectification entry will 
be written as under.
Date Particulars
L.
F.
Debit
Rs.
Credit
Rs.
Vikash’s A/c…………………………Dr.
             To Akash’s A/c
(Being the rectification of Rs.1,000 
received from Akash  wrongly 
credited to Vikash’s account.)
1,000 
1,000
  
TYPES OF ACCOUNTING ERROR:
•
Errors which do not affect the trial balance.
•
Errors which affect the trial balance.
  
Errors which do not affect the 
trial balance
•
Errors of Omission
•
Errors of Principle
•
Errors of recording to a wrong account
•
Errors committed at the time of recording in 
primary books (Error of commission)
•
Compensatory errors
Read More
1365 videos|1312 docs|1010 tests

Top Courses for SSC CGL

FAQs on PPT - Rectification of Errors - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

1. What is a trial balance and why is it important in accounting?
Ans. A trial balance is a statement that lists all the ledger accounts and their respective debit or credit balances. It is important in accounting because it ensures that the total debits equal the total credits, helping to identify any errors or discrepancies in the accounting records.
2. How do you prepare a trial balance?
Ans. To prepare a trial balance, you need to list all the ledger accounts and their respective debit or credit balances. Then, you add up all the debit balances and credit balances separately and ensure that they are equal. If they are not equal, it indicates an error that needs to be rectified.
3. What are some common errors that can occur in a trial balance?
Ans. Some common errors that can occur in a trial balance include: - Omission of a transaction or ledger account - Incorrect recording of a transaction - Posting a transaction to the wrong account - Calculation errors in recording debit or credit amounts
4. How can errors in a trial balance be rectified?
Ans. Errors in a trial balance can be rectified by following a systematic approach: - Identify the type of error (omission, commission, or principle) - Locate the specific error by reviewing the ledger accounts and supporting documents - Make the necessary adjustments to correct the error, such as posting missing entries or correcting the amount - Recalculate the trial balance to ensure the debits and credits are now equal
5. What is the importance of rectifying errors in a trial balance?
Ans. Rectifying errors in a trial balance is important because it ensures the accuracy and reliability of the financial statements. If errors are left uncorrected, they can lead to incorrect financial reporting, misinterpretation of business performance, and potential legal and financial consequences. Rectifying errors helps maintain the integrity of the accounting records and provides a true and fair view of the company's financial position.
1365 videos|1312 docs|1010 tests
Download as PDF
Explore Courses for SSC CGL exam

Top Courses for SSC CGL

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

study material

,

PPT - Rectification of Errors | SSC CGL Tier 2 - Study Material

,

Online Tests

,

Important questions

,

Previous Year

,

Previous Year

,

PPT - Rectification of Errors | SSC CGL Tier 2 - Study Material

,

Previous Year Questions with Solutions

,

ppt

,

Free

,

PPT - Rectification of Errors | SSC CGL Tier 2 - Study Material

,

Viva Questions

,

Summary

,

Exam

,

Semester Notes

,

Previous Year

,

Extra Questions

,

practice quizzes

,

MCQs

,

pdf

,

Sample Paper

,

Objective type Questions

,

video lectures

,

shortcuts and tricks

,

Online Tests

,

Online Tests

,

past year papers

,

mock tests for examination

;