Rectification of errors

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Linto

Linto (Querist)
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23 March 2011 Hi,

Please let me know what is rectification of error with an example.

CS LLB Pulkit Gupta

CS LLB Pulkit Gupta (Expert)
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23 March 2011 Errors and rectification of errors:-
Accountants prepare trial balance to check the correctness of accounts. If total of debit balances does not agree with the total of credit balances, it is a clear-cut indication that certain errors have been committed while recording the transactions in the books of original entry or subsidiary books. It is our utmost duty to locate these errors and rectify them, only then we should proceed for preparing final accounts. We also know that all types of errors are not revealed by trial balance as some of the errors do not effect the total of trial balance. So these cannot be located with the help of trial balance. An accountant should invest his energy to locate both types of errors and rectify them before preparing trading, profit and loss account and balance sheet. Because if these are prepared before rectification these will not give us the correct result and profit and loss disclosed by them, shall not be the actual profit or loss.

U can get details of types of errors and examples on this link.
https://EzineArticles.com/615981

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