Sweete

 Profile Answers by Sweete 

• Jun 20th, 2008

 

If any errors are made in accounting like posting wrong amount, posting to wrong account, making partial entries or giving credit to the account instead of debit etc all these kind of errors are committed in accounting. 

Rectification is making the correct journal entries for the errors committed which is called as RECTIFICATION OF ERRORS in accounting terms.

All these errors are identified in the trail balance i.e. if the debit balance is not equal to the credit balance in the trial balance it indicates that some errors are being committed.

Correction of errors is called as Rectification.


Sweete

vasudeo007

 Profile Answers by vasudeo007 

• Aug 31st, 2008

 

There are three types of errors possible.

Error of commission
Error of omission and
Error of principle

In error of commission, the right amount is posted in wrong account.

Say I buy something from you so it is Goods a/c debit to cash account or
Your account debit to cash account but the same entry is posted debiting someone else then it is error of commission.

In error of omission some entry is fully or partially not updated in ledger. Say in above example if I do not update both goods and cash a/c then it is omission error.
And if I don't update either goods or cash account then it is still error of omission.

Error of principle is showing capital expense/income as revenue expense/income.

Rectification is usually done after audit. When auditor finds out the error then corresponding account is debited or credited and proper effect is given. That correction is called rectification.

Vasudeo.