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Hi im new to this website and seekin answer for a doubt .

garima m (student) (28 Points)

30 April 2014

Is there any similarity between these errors :

1. The total of the purchase returns book has been overcast by Rs 50.

2. Goods purchased for Rs 550 from rajesh have entered in the purchases books as for Rs 515.

3. The sale book had been overcast by Rs 100.

and what kind of errors do they belong to 2 sided or 1 sided and how to rectify these errors when there is suspense account and when there is no suspense account.

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1 Replies

CA Saroj Kumar (Keen to learn something new every moment) (2588 Points)
Replied 30 April 2014

Rectification Of One-sided Errors Located Before Preparation Of Trial Balance
One-sided errors are those errors which affect only one side of an account. Wrong totaling of subsidiary books, posting a wrong amount, posting on the wrong side are some of the examples of one-sided errors. Since two accounts are not involved in these errors, journal entry can not be passed for rectifying such errors. The one-sided error is rectified by making an additional posting on the affected side of the ledger account.

* Rectification Of Two-sided Errors Located Before Preparation Of Trial Balance
The errors that affect two or more accounts are called two-sided errors. Correction of such two-sided errors needs to make rectification journal entries since such errors involve two or more accounts. Therefore, one account is debited and another account is credited to rectify two-sided errors. The rules of debit and credit are applied to rectify these errors.
The following three steps are taken to rectify the two-sided errors.
a. Identify correct entry
b. Rewrite wrong entry
c. Find rectifying entry by making adjustment of correct entry and wrong entry