Rectification of Errors

(III) - When there is a short dobit in one A/c and a short Credit in another A/c.

Example : Goods sold to Seema for Rs. 540 was entered in the Sales Book as Rs. 450.

Solution :

• Here Seema's A/c is debited by Rs. 90 short and Sales A/c is credited by Rs. 90 short. (Instead of Rs. 540 by Rs. 450)
• Therefore rectification will be done by Debiting Seema's A/c and Crediting Sales A/c. Hence Rectifying entry is :

(IV) - When there is an Excess Debit in one A/c and Excess Credit in another a/c.

Example : Goods purchased from Mohan for Rs. 300, was recorded in Purchase Book as Rs. 3000.

Solution -

• Here Purchases A/c is Debited by Rs. 3000, instead of Rs. 300, ie. Rs. 2700, more.
• Mohan's A/c is also Credited by Rs. 2700 more.
• Rectification will be done by debiting Mohan's A/c and Crediting purchases A/c by Rs. 2700, ie. the entry in the reverse direction.

Rectifying Entry

Problem :
Rectify the following errors :

1. Credit purchases from Amit not recorded for Rs. 8,000 (Error of Complete ommission).
2. Wages paid Rs. 500 for the installation of a new Machinery were recorded in wages A/c. (Error of Principle)
3. Credit sales to Anil for Rs. 5,000 were posted to Amit's A/c (Error of Com mission)
4. Goods purchased from Ram for Rs. 900 were recorded in Sales Book (Error of Commission)
5. Goods retuired to Amit for Rs. 1,000 entered as Rs. 100 (Error of Cmmission)
6. Rent paid Rs. 400 wrongly debited to Landlord's A/c (Error of Principle)
7. Rs. 500, paid for the proprietor's medical bill were debited to "Sundry Expenses A/c" [Error of Principle]
8. Rs. 2,500, received from Anil were recorded in the Cash Book as Rs. 5,200 [Error of Commission]

Solution : Note that
In Error No. 4. more than two Account are affected.

(a) Wrong Entry done
Ram                       Dr.                   900
To Sales A/c                                               900

(b) Correct Entry Required
Purchases A/c        Dr.                   900
To Ram                                                      900
Here to cancel the effect of wrong entry we have to do the entry

(c) Sales A/c                Dr.                   900
To Ram                                                      900
Now the Rectifying entry will be

Entry (b) + Entry (c) ie.

Date/ Error	Particular	L.F	Dr. (Rs)	Cr. (Rs)
1.	Purchases A/c                    Dr. ToAmit (For the credit purchases to Amit omitted to be recorded)			8,000 8,000

CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari ) 
Email Id : [email protected]