What is Rectification of Errors? Video Lecture | Accountancy Class 11 - Commerce

so what is rectification of errors
rectification of errors like ants there
is nothing but correction of mistakes
another word for rectification
correction a word for errors is mistake
nothing but correction of mistakes how
do you correct the mistakes it is not
that when there is an error we can go
and scratch it errors have to be
rectified through journal entries
through journal entries so this is what
we will be discussing how what are the
journal entries through which people be
rectified so how do what is the
correction of mistake what are the
examples of errors let's see what is an
example of error let's consider
something it is quite possible that we
leave out an invoice there is a purchase
invoice we have not recorded it at all
so that could be an omission of a
purchase transaction entirely from the
books it is again possible a purchase
invoice we go and record in the sales
day book purchase invoice and stop
recording within the purchase journal we
go and put it in the sales chair we
might make a mistake of total when we
balance a ledger account there is a
mistake in the total there can be an
error of posting in so posting to X is a
complete pose - why is it so examples of
error are many it can arise at different
stages while recording while posting
while taking balances to the trial
balance etc etc etcetera why does it
happen if you look at reasons it could
be oversight it could be negligence
it could be Equalists it could be
because the person did not know for
example he may not know the distinction
between a capital expenditure and
revenue expenditure wages paid for
installation of a machinery should be
capitalized because we are only
installing the machinery all expenses
incurred on installation of the
machinery right up to when the machine
can be put to use would all be
capitalized added to the cost of the
machine if this person instead of saying
debiting it to machine account he debits
it to the wages account because he is
not impaired he only knows that it is
wages and any wages he death it's two
pages then there would be an error
because he has wrongly debited wages
instead of debating machinery this is
called an error of principle he was not
aware that wages for installation of
machine should go to the pages so it
could be oversight it could be
negligence maybe just ignorance
carelessness whatever there could be
many reasons why these mistakes are made
now what happens when there are errors
usually when there are errors how do we
know that there are errors we record in
a journal from the journal P post to the
nature and from the ledger we take all
the balances and put it in a statement
called a trial balance if the trial
balance agrees it tallies we usually do
not look further we do not think there
are errors we assume that there are no
errors though that may not necessarily
be a fact but when the trial balance
does not tell it does not agree we are
certain that there is some error and we
then try to find what are the errors and
then go ahead and rectify how do we
rectify like I said this for please
rectify bypass
in certain journal entries sometimes
they are entries sometimes they are
corrections which we have to incorporate
into the nature in nature console
rectification of errors is nothing but
correction of certain mistakes which
have been left in the books of account
either at the time of recording or at
the time of posting or while little
taking the balances to the trial balance
how is this rectification done usually
bypassing journal entries of course the
rectification would also depend on the
kind of rectification that people would
actually depend on when the error is
detected is in before preparation of the
trial balance after preparation of the
trial balance or even in the next year
so rectification of error nothing but
correction of mistakes which have been
committed by recording posting or taking
balances to the trial balance through
journal entries through journal entries