Searching of Errors and Rectification of Errors Video Lecture | Accountancy Class 11 - Commerce

in the first video we have discussed an
introduction with first model so in this
video we are going to see model two and
three Arisa before preparing trial
balance and after preparing trial
balance look at the second model give
journal entry to rectify the following
errors here we have certain errors for
these kind of errors or identified
before preparing the trial balance for
this kind of error we need to follow
three things first we need to write the
correct entry for the transaction then
we need to write the wrong entry which
is located okay and then we need to
rectify the particular error for that
you have to make a rectification entry
so these are the three simple procedure
we need to follow to rectify each and
every error in the following cases so
look at the first error salary of rupees
20,000 paid to John has been debited to
his personal account so first we need to
write the correct entry so what is the
correct entry for this transaction
salary of rupees 20,000 paid to John so
what is the entry for this salary
account data - cash okay this is a
correct entry but here salary of 20,000
paid to John has been debited to his
personal account so debited to his
person upon meansa the wrong entry is
John upon data - cash okay in John
account let me show the ledger salary of
rupees 20,000 paid to John has been
debited to his personal upon so in his
personal one that isn't John of Gaunt
salary amount has been debited that is -
cash they have entered the amount in
debit side of John account so what is
the entry John account data - cash
this is the wrong thing they have done
is a wrong entry okay so what is actual
entry salary account data - cash this is
a right entry and this one is wrong
entry they are wrongly debited to John
account that is his personal account so
this is the wrong ante now we have to
make rectification entry in order to
rectify
particular error so first we need to
write the correct entry correct entry
for the transaction is salary account
data to cash 20,000 but the wrong entry
is John aachen data to cash 20,000 okay
so this one is correct entry and this
one is wrong entry now we need to make
the rectification entry so before you
write the rectification entry just
compare the correct entry and wrong
entry in the correct entry but it said
cash is there in the wrong entry also
credited cash is there so no problem
with this cash so the problem is the
error is debit John so this David John
account need to be rectified so in order
to rectify this error we need to credit
John account and what accounts supposed
to become in the debit side salary
account okay
the rectification entry is we need to
record salary in debit side and in order
to rectify this error just credit John
account to John how much 20,000 so this
is the way to rectify the error okay
you have to write narration for each and
every rectification entry correction of
wrong debit to John's personal account
for salary paid now see the second case
rupees 2500 paid for a typewriter
okay was charged to off his extensors
here in this case what is the correct
entry they have paid 2,500 for
typewriter so entry for the transaction
is typewriter account data to cash they
have paid for typewriter but this
wrongly charged to office expenses
instead of typewriter they have written
off his expenses so wrong entries office
expense upon data to cash correct entry
for second transaction type rhetorical
data to cash
among 2,500 wrong entries so instead of
typewriter they have entered office
expense now we have to make the
rectification entry so just compare
correct entry and wrong entry so in the
correct entry credit said cash is there
in the wrong entry also but it said cash
is there so no problem with cash account
the problem has a they have debited
office expense instead of typewriter so
now we need to credit office expense in
order to rectify this error debit side
we need to write typewriter so in order
to rectify this error just credit office
exams to office expense account debit
side we need to require typewriter
soin trace typewriter account data to
office expense a 2500 2500 in also this
is the rectification entry for second
transaction now we need to write the
narration correction of wrong debit to
of his expense account for purchase of
typewriter see the third case 10,000
rupees paid for missionary purchased has
been charged to purchase account so what
is the correct entry when he purchase
missionary entry for the transaction is
missionary account data to cash but they
have wrongly entered in purchase upon
that is a 10000 paid for missionary
purchase has been charged to purchase
account so the wrong entries purchase
upon data to cash now we have to make
the rectification entry so correct entry
for the transaction is missionary upon
data to cash up on ten thousand wrong
entry is a purchase upon data to cash
ten thousand now we need to write the
rectification entry so rectification
entry for the bow transaction is just
compare the wrong entry with the correct
entry so credit side cash is there so no
problem with cash account now we need to
rectify the wrong entry so wrong entry
is this one is a wrong entry so David
purchase upon no so in order to rectify
this just credit purchase account so to
purchase so purchase credit there
we need to write missionary account so
the rectification entry is missionary
upon data to purchase 10,000 narration
for the rectification
entries correction of wrong David to
purchase upon for missionary purchased
look at the fourth is repairs made were
debited to building account for a base
500 so what is the entry for repairs
made repairs upon data to cash account
but here they debited to building
account
so the wrong entry is a building upon
data to cash account so now you have to
make the rectification entry correct
entry repairs upon data to cash correct
entries repairs upon data to cash 500
wrong entry is wrong entry is building
upon data to cash so now we have to make
the rectification entry just compare the
wrong entry with the correct entry so
credit side cash cash is there so no
problem with the cash now we have to
rectify this building so in order to
rectify the wrong entry just credit
building account and debit repairs
account so rectification entries repairs
upon data to building account a
narration for the transaction is a
correction of wrong debit to building
account for repairs made see the 51 an
amount of rupees 4000 withdrawn by the
propraetor for his personal use has been
debited to office expenses so what is
the correct entry for this transaction
so withdrawn by the propraetor for his
personal user so entry for the
transaction is drawings upon it a to
cash account but has been debited to
office expenses so wrong entries office
expense of
to cash account so now we have to make
the rectification entry correct entry is
drawings upon data to cash account 4,000
wrong entries office expense account
data to cash rectification entries so
credit side cash upon cash account is
there so no problem with the credit
balance now we have to rectify the debit
one that is office expense so just
credit office expense and debit drawings
so rectification in race drawings upon
date on to office expense 4000 narration
correction of wrong debit to office
expense account for cash withdrawn by
the proprietor for his personal use look
at the next case 3000 received from Alex
and company has been wrongly entered as
a lease and company so what is the
correct entry received 3000 from Alex
and company so entry for the transaction
is cash accorded to alex ikonn but has
been wrongly entered as ali's account to
the wrong entrance cash account data to
Ali's upon now we have to make the
rectification entries correct entry cash
account data to Alex and company 3000
the wrong entry is cash account data to
Alice and company account
rectification entrance see here in the
wrong anti debit side cache is there in
the correct entry also debit set cash is
there this is not the problem the
problem is a credit said a laser so
instead of Alexa they have written a
laser so you know rectify this error we
have to debit the LS in the credit side
we have to write the correct thing that
is Alex & Co so rectification entries
aisle is upon data to Alexa Concha
Alison company account data to Alex and
company account
narration correction of wrong credit to
Alice and company instead of Alex and
company look at the seventh case
purchase of goods from Davie amounting
to rupees 30000 has been wrongly passed
to through the sales book so what is the
correct entry for this transaction
purchase of goods from David entry for
the transaction is a purchase upon data
- de vida con but they are entered
wrongly as sales account that is the
wrong entry is David upon data - sales
accounted so now you have to make the
rectification entry correct entry is
purchase upon data to David account
wrong entry is david about it are two
sales accounts
thirty thousand now we have to make the
rectification entry just see the wrong
entry in the wrong entry David account
is debited sales account is credited
okay look at the correct entry David up
on must be accredited but here they have
debited so in order to rectify this
error you have to credit David so -
David okay so in the wrong entry credit
side sales account is there this is the
wrong thing in order to rectify this
wrong entry you have to enter this into
debit side so sales account data okay so
sales upon date on but the purchase
entry is not recorded in the wrong entry
so now you have to write purchases also
say the actual transaction is purchases
but they wrongly enter in sales book so
in order to rectify the wrong entry
first we need to write the reverse entry
that is it sails upon data to davidic on
at the same time we have to write the
purchases in the rectification entry so
in order to rectify this wrong entry we
need to write that double amount to
David upon that one amount for
rectification and one amoun for correct
entry so totally you need to write sixty
thousand one amount for reverse entry
and one amount for actual entry the
thirty thousand is reverse entry and
thirty thousand for actual entry so
total how much I'm gonna need to be
credited to David account sixty thousand
this is the rectification entry for this
kind of error narration for the
rectification in Ray's correction of
wrong entry in sales book for a credit
purchase from David look at the eight
the case credit sale of goods twenty
five thousand - Martin has been wrongly
passed to through purchase booker so
what is the correct entry credit sales
of goods rupees 25000 - Martine entry
for the transaction is
Martin account data to sales account
25,000 but they're wrongly passed
through purchases Booker so wrong
entries purchase upon data to Martin
upon so now you have to make the
rectification entry so this is also just
like a previous entry okay correct entry
is Martin account data to sales account
25,000 wrong entry is purchase upon data
to Martin account so here here the
entire sales is wrongly enter in
purchase account so now we need to enter
double the amount to Martin account in
order to rectify the error rectification
entry is Martin upon data to purchase to
sales how much fifty thousand
twenty-five for purchases and
twenty-five for sins okay the actual
transaction is sales only but the
purchase is wrong so purchase need to be
credited in order to rectify the wrong
debate and totally we need to recover
fifty thousand to Martin upon one for
the wrong entry and one for the third
entry narration for the rectification
entries correction of wrong entry in
purchase book form credit sales to
Martin look at the next case sold old
furniture for three thousand passed
through sales Booker say sales book is
required to record only the credit
transaction but here they have recorded
sale of old furniture in this sale book
okay so the correct entry for the
transaction is for sale of old furniture
entries cash upon data to furniture
account cash comes in furniture goes out
is the correct entry but the wrong entry
is cash upon data to sales are gone now
you have to make the rectification entry
correct entry
cash account data to furniture account
wrong entry is cash account data to
sales account rectification entry is so
just compare the two entries debit side
cash is there in the cart entry also
debit side cash is there so no problem
with the debit balance here the wrong
entry is a credit cash so in order to
rectify this error just debit sales upon
and credit furniture account so
interactif equation entries sales upon
data to furniture account
narration for the rectification in race
correction of wrong credit to sales
account for sale of older furniture now
see the last case paid five thousand for
installation of missionary debited to
wages account so correct entry for the
transaction is a paid five thousand for
the installation of missionary entries
missionary accounted are two cash
account but the wrong entry is wages
upon data to cash upon so now we have to
make the rectification entry corrupt
entrance missionary account data to cash
account five thousand wrong entries
wages upon data to cash wrong entry is
wages upon data to cash account five
thousand so rectification entry is okay
so in the wrong entry credits at cash is
there the correct entry also credits at
cash account is there so no problem with
cash the problem is a David wages
account this need to be rectified known
so the debit varies will be entered in
credit side so debit side will be
missionary account so rectification
entry is missionary upon data to wages
account narration for the rectification
interest correction of wrong baby to
wages account for wages paid for
installation of missionary so this is
the procedure to make rectification
entry okay when we find or when we
locate errors before we prepare the
trial balance this is the simple
procedure first we need to write the
correct entry and we need to write the
wrong entry then we can make the
rectification entry now let us see the
third model
look at this problem an accountant could
not tally the trial balance the
difference of five thousand was
temporarily placed into the credit of
suspense accounted for preparing the
final accounts the following errors
we're later located did this information
they ask you to pass the necessary
rectifying in tracer and they ask you to
prepare suspense account say generally
trial balance will be prepared at the
end of the year in order to prepare the
final accounts if there is any
difference when you prepare the trial
balance the trashman's will always show
equal amount if we find any difference
in the trial balance okay so it will be
concerned as a suspense account
so whenever the mistakes or locater we
need to make rectification entry along
with the suspense are born ada debiting
or crediting the suspense account okay
when all the errors are rectified then
the suspense account is automatically
closed so suspense upon it's only a
temporary account so when you prepare
the final accounts are the suspense upon
can be entered either assets said or
liabilities said if you find any debit
balance in the trial balance it will be
shown under assets Eider if you find any
credit balance and trial balance it will
be entered in live with inside okay
later
we need to find the errors so when you
find the error or when we locate the
error we need to pass rectification
entry along with the suspense of contact
that is either we need to debit the
particular error or we need to credit
the particular error you have to show
suspense account also okay this is the
procedure when we make rectification
entry after preparing the trial balance
look at the first case Commission of
rupees 400 pay was posted Kleiser wants
to discount allowed account and wants to
commission account they have paid a
commission of rupees 400 but they are
wrongly
in two accounts oneness discount allowed
account and another one is commission
account a commission account is a right
thing but they wrongly and they have
entered twice one in discount allowed
account and once to commission a counter
so this need to be rectified so in order
to rectify this discount allowed is a
David balance not just credit discount
allowed upon along with the suspense of
contact so rectification entry for the
transaction has a suspense account data
to discount allowed account they wrongly
entered they are wrongly posted in two
accounts one to discount allowed account
and once to commission upon so
commission account is a right thing the
wrong thing is they have entered in
discount allowed account this need to be
rectified
so discount allowed accounts a debit
balance in order to rectify this just
credit discount allowed account
rectification entry a suspense upon data
to discount allowed account
narration amount wrongly debited to
discount allowed account now rectified
now look at the second case the sales
book was under cost by 800 rupees er say
already we have seen the first model
know if there is any under cost give
further in the same account so sales
book is a credit balance so credit
balance showing lesser amount than the
actual amount is called under castor so
we need to give further credit to sales
accountant so entry for the transaction
is a suspense upon data to sales account
surveys 800 narration sales booked under
cost by 800 now rectified look at the
third case a credit sale of rupees 2007
52 Alice dough correctly entered in
sales Booker was posted wrongly to her
account as three thousand five seventy
okay what is the journal entry for this
transaction cut its sales to a laser so
entry for the transaction is a alleys
upon data to sales okay two thousand
seven fifty two thousand seven fifty so
a credit sale of rupees two thousand
seven fifty two alleys though correctly
enter in sales Booker so after making
the journal they will prepare the ledger
no so in the ledger we need to prepare
two ledger to record this particular
transaction so honest sales upon other
one is Alice account okay in the sales
of Archer Sood entering dough correctly
enter in sales book so in the sales book
they have correctly enter in sales book
they need to write by Alice two thousand
seven fifty they are correctly entered
this transaction in the sales book but
was posted wrongly to her account as
three thousand five seventy saying Ali's
account we need to write a debit side to
sales two thousand seven fifty but
instead of two thousand seven fifty they
are wrongly enter three thousand five
seventy how much three thousand five
seventy so how much what is the
difference how much amount they have
entered excess Lee the difference is h20
so a twenty rupees you have entered
excess than the actual number so this is
called as over casting so in order to
rectify this particular error we need to
enter the excess amount in the opposite
side we need to write eight twenty in
the opposite side by writing suspense
account so what is the entry
this suspense upon data to Ali's account
how much 8:20 so this is the
rectification entry third entering
suspense upon data to Ali's account
eight twenty eight twenty narration so
narration for the transaction is wrong
posting off sale of rupees two thousand
seven fifty to Alice has three thousand
son 15 now rectified look at the next
case accurate purchase from Danny la
offer priest thousand seven fifty though
correctly entered in purchase book was
wrongly debited to her personal account
so let me explain this with a ledger
what is the correct entry for the
transaction turret purchase from Danny
laksa entries purchase upon data to
denilla account this is the correct
entry okay
SoDo correctly entered in purchase
broker so in order to enter this
particular transaction we need to have
two Ledger's one is purchase of ganja
another one is Daniel account in the
purchase upon do correctly entered that
is David say to denilla
thousand seven fifty but there wrongly
look at the problem was wrongly debited
to her personal account she in the
personal upon in the Daniel Laconte we
need to credit purchase ok there is by
purchase account thousand seven fifty we
need to credit purchase in the Danny
last account but they are wrongly
debited so instead of crediting
thousands on fifty-two daniel Akaka they
wrongly enter in debit side that is to
purchase account thousand seven fifty
they have entered so this wrong thing
they have done look at the problem again
a current purchase from Danny no
thousands on fifty though correctly
entered in purchase book was wrongly
debited to her personal account instead
of crediting thousands on fifty-two
danila
they are wrongly debited to Danny Lacan
now we need to rectify this amount so in
order to rectify this we need to enter
double the amount to Danny las upon so
they didn't enter credit side okay so
now we have to make a correct entry as
well as we need to rectify this entry so
in order to rectify this we need to
enter double the two Daniella's account
we need to credit double the amount to
Dan Innis account so instead of
thousands on 50 we need to write 3,500
by writing by suspense account sentry
rectification in race suspense account
data to denilla account among 3,500 so
we need to enter double the amount why
because thousand 754 the actual entry
and thousand 754 to rectify the wrong
debit so for this only we have to write
double the amount to Danny last account
rectification in race suspense upon data
dude annular account 3500 narration for
the transaction is credit purchase of
rupees thousands on 50 from Danny la
wrongly debited to her personal account
now rectified look at the nasty case
discount column of the payment side of
the cash broker saying the cash book
will be having received aside and
payment sided in the recipe side will
have one separate column for discount
allowed in the payment set will have a
discount column that is discount receipt
column separately okay so in the
discount column of the payment side so
discount column means discount received
column okay of the payment side of the
cash book was wrongly added as three
thousand six forty instead of three
thousand 120 so what is the difference
five hundred twenty rupees
excess amount that is a disc on column
showing excess amount than the actual
amount so now we have to make the
rectification entry so discount received
is
always income so discount receipt is an
income known so income always showing
credit balance so when the credit
balance is over fasting means we need to
debit the excess amount along with the
suspense account so entry for the
transaction is a discount received upon
data to suspense account entry for the
transaction is a discount received
accorded to suspense account 520 here we
need to write the exa someone that is
520 is excess amount know that you need
to write narration for the transaction
is excess credit in discount received
account now rectified so far we have
discussed the rectification in race now
we are going to prepare suspense account
so when you prepare suspense account you
have to start with that balancing figure
that is opening balancer so opening
balance how much 5,000 rupees know the
difference of 5,000 was temporarily
placed to do the credit of suspense upon
so suspense upon showing credit balance
this is the format date particulars
ledger folio amount date party class
ledger folio amount debit side credit
side so suspense of on showing credit
balance now so by balance brought down
how much 5,000 look at the first entry
suspense upon data to discount allowed
upon in suspense account debit side to
discount allowed how much 400 look at
the second entering suspense upon data
to sales about 800 in suspense account
debit side to sales
800 look at the third transaction
suspense upon data to ELISA bouncer so
David side to Ali's account
how much 8:20 look at the fourth entry
suspense upon data to daniela 3500 so
suspense upon debit side to daniela 3500
look at the last entry discount received
upon data to suspense upon in suspense
upon credit discount receded so by
discount received how much 520 now get
the total you will be getting equal
amount a credit side five thousand five
twenty debit should also will be getting
equal amount five thousand five twenty
this is the way to prepare suspense
account when we find and rectify entries
after preparing the trial balance hope
your understood these concepts thank you