Rectification of Error

Types of Error:

1. Error of Omission ( Transaction not recorded)

2. Error of Commission. (Transaction of recorded with not figure or wrongly recorded)
3. Error of Principle
4. Compensating Errors

Errors of Omission: This kind of error arises when a transaction is partially or completely
omitted to be recorded in the books of accounts. e.g. failure to record credit purchases. As a
result of this omission neither the creditor’s account is credited nor is the Purchase account
debited. This type of error does not affect the agreement of Trial Balance and hence the Trial
Balance fails to disclose such type of errors.
These can be of two types:
a) Error of complete omission which does not affect the agreement of Trial Balance.
b) Error of partial omission which affects the agreement of Trial Balance.

Errors of Commission: These are the errors which are committed due to wrong Entries or
Posting of transactions wrong totalling or wrong balancing of the accounts, wrong casting of the- Subsidiary Books or wrong
recording of amount in the books of original entry. These errors
affect the agreement of Trial Balance
.
Errors of commission are classified into following:
a) Errors of Recording
b) b) Errors of Casting

Errors of Principle: Transactions recorded without following the accounting principles and
rules are known as Errors of Principle. An error of principle may occur due to the incorrect
classification of expenditure or receipt between capital and revenue as it may lead to under/
over stating of income or assets or liabilities. This error does not affect the Trial Balance as
amounts are placed on the correct side but in a wrong account) Errors of Carrying d) Errors of Posting

Compensating Errors: When two or more errors are committed in such a way that the net
effect of these errors on the debit and credit of accounts is nil or nullified such errors are called compensating errors. These
errors do not affect the agreement of Trial Balance
.
 1.Rectify the following errors:

1. Credit sales to Amar Rs 5000, were not recorded.

2.Credit purchases from SumanRs 10000, were not recorded ,
3.Goods returned to RohitRs 4000 were not recorded,
4.Goods Returned from ManojRs 3000,were not recorded

2.Rectify the following errors

(i) Credit sales to Mridula ₹ 5,000 were recorded as ₹ 500.
(ii) Credit purchases from Nayna ₹ 8,000 were recorded as ₹ 800.
(iii) Goods returned to Priya ₹ 12,000 were recorded as ₹ 1,200.
(iv) Goods returned from Rashi ₹ 10,000 were recorded as ₹ 1,000.

3.Rectify the following errors:

(i) Credit sales to Mohan Rs. 7,000 were not recorded as Rs. 7,200.
(ii) Credit purchases from Rohan Rs. 9,000 were recorded as Rs. 9,900.
(iii) Goods returned to RakeshRs. 4,000 were recorded as Rs. 4,040.
(iv) Goods returned from Mahesh Rs. 1,000 were not recorded Rs. 1,600.

4.Rectify the following errors:

(a) Sales book overcast by Rs.700.

(b) Purchases book overcast by Rs. 500.
(c) Sales return book overcast by Rs. 300.
(d) Purchase return book overcast by Rs. 200.

5.Give rectifying entries for the following:

(i) A credit sales of goods to Ram ₹ 2,500 has been wrongly passed through the 'Purchases Book'.
(ii) A credit purchase of goods from Shyam amounting to ₹ 1,000 has been wrongly passed through the 'Sales Book'.
(iii) A return of goods worth ₹ 1,100 to Mohan was passed through the 'Sales Return Book'.
(iv) A return of goods worth ₹ 500 by Ganesh were entered in 'Purchases Return Book'.

6.Pass Journal entries to rectify the errors in the following cases:

(i) A purchase of goods from David amounting to ₹ 150 has been wrongly passed through the Sales Book.
(ii) A credit sale of goods of ₹ 120 to Peter has been wrongly passed through the Purchases Book.
(iii) ₹ 200, salary paid to Cashier, B. Naidu, stands wrongly debited to his Personal Account.
(iv) A credit sales of ₹ 4,230 to Krishan entered as purchase from Kishan ₹ 4,320.
(v) Ramesh's Account was credited with ₹ 840 twice instead of once.

7.Give rectifying Journal entries for the following errors:

(i) Sales of goods to Madan ₹ 6,000 were entered in the Sales Book as ₹ 600.
(ii) Credit purchase of ₹ 1,500 from Ajay has been wrongly passed through the Sales Book.
(iii) Repairs to building ₹ 300 were debited to Building Account.
(iv) ₹ 2,050 paid to Rohit is posted to the debit of Mohit’s Account as ₹ 5,020.
(v) Purchases Return Book is over casted by ₹ 400.

8.Rectify the following errors:

(i) Purchases Book is overcast by ₹ 500.
(ii) Salary paid to an employee, Mr. Ajay, is debited to his Personal account ₹ 3,000.
(iii) Goods sold to Shashi on credit ₹ 300 have been wrongly passed through the Purchases Book.
(iv) Total of Returns Inward Book has been added ₹ 9 short.
(v) Purchase of chair from Happy Traders for ₹ 305 has been entered in the Purchases Book as ₹ 503.
9.How will you rectify the following errors?
(i) ₹ 500 spent on building repairs has been debited to the Building Account.
ii)₹ 500 spent on building repairs has been debited to the Building Account by Rs 5000.
(iii) Furniture worth ₹ 5,000 purchased from X on credit omitted from being recorded in the books.
(iv) Total of Returns Inward Book was added by ₹ 200 instead of ₹ 250.
(v) Goods purchased from Mohan for ₹ 5,000 was passed through Returns Inward Book.
(vi) Goods returned to Ram Rs 100 was passed through Sales Book.
(vii) Bills payable of ₹ 5,000 accepted in favour of Murari, was passed through bills receivable book with ₹ 500 but Murari's
account was correctly debited.

10.(i) The total of one page of the Sales Book was carried forward to the next page as ₹ 2,785 instead of ₹ 2,587.
(ii) A cheque of ₹ 400 received from Mohan was dishonored and had been posted to the debit side of the Allowance Account.
(iii) A return of goods worth ₹ 5,000 by a customer was entered in the Purchases Return Book.
(iv) A sum of ₹ 200 owed by Vinay has been included in the list of Sundry Creditors.
(v) Discount allowed of ₹ 200 to Anil was posted to his account as ₹ 2,000.

11Rectify the following Errors :

(1) Rs. 5,000 Paid for furniture purchased has been debited to purchases
account.
(2) Wages paid Rs. 7,000 for installation of new machinery were recorded
in wages account.
(3) Goods sold to HariRs. 10,000 not recorded.
(4) Rs. 2,500 received from Monu has been credited to Sonu A/c.
(5) Rent paid Rs. 1,000 wrongly debited to Landlord Account.
(6) Credit Purchase from Raman Rs. 15,000 were wrongly recorded in
sales book.
(7) Credit sales to GeetaRs. 8800 were recorded as Rs, 8,000\

12.Rectify the following errors:

(i) Goods purchased from Kunal for ₹ 8,000 and from Kapil of ₹ 9,000 recorded correctly in the
Purchases Book. However, ₹ 9,000 was posted to Kunal and ₹ 8,000 to Kapil.
(ii) Anil's Account was excess debited by ₹ 500 while Suraj's Account was short debited by ₹ 500.
(iii) Parkar's Account was short credited by ₹ 700 while Manisha's Account was excess credited by ₹
700.
(iv) Goods sold to Roopak for ₹ 1,000 and to Sagar for ₹ 1,800 recorded correctly in the Sales Book.
However, ₹ 1,800 was posted to Roopak and ₹ 1,000 to Sagar

14.Pass the necessary Journal entries to rectify the following errors:

(i) Credit sale of ₹ 850 to Reshmiwas posted to Rashmi’s Account Rs 580
(ii) Cash sale of ₹ 850 to Meenu was posted to the credit of Meena.
(iii) Amount of ₹ 1,500 withdrawn from bank by the proprietor for his personal use was debited to Purchases Account.
(iv) Credit sale of old furniture to Mohan for ₹ 1,700 was posted as ₹ 7,100.
(v) Credit sale of old furniture to Babu Ram for ₹ 3,000 was credited to Sales Account.
(vi) Cheque of ₹ 1,280 received from Farid was dishonored and has been posted to the debit of Sales Return Account.

Rectify the following errors:

a. Depreciation provided on machinery ₹ 4,000 was not posted.
b. Bad debts written off ₹ 5,000 were not posted.
c. Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted.
d. Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount account.
e. Bill receivable for ₹ 2,000 received from a debtor was not posted.

Rectify the following errors :

a. Depreciation provided on machinery ₹ 4,000 was posted as ₹ 400.
b. Bad debts written off ₹ 5,000 were posted as ₹ 6,000.
c. Discount allowed to a debtor ₹ 100 on receiving cash from him was posted as ₹ 60.
d. Goods withdrawn by proprietor for personal use ₹ 800 were posted as ₹ 300.
e. Bill receivable for ₹ 2,000 received from a debtor was posted as ₹ 3,00

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.
a. Depreciation provided on machinery ₹ 4,000 was not posted to Depreciation account.
b. Bad debts written-off ₹ 5,000 were not posted to Debtors account.
c. Discount allowed to a debtor ₹ 100 on receiving cash from him was not posted to discount allowed account.
d. Goods withdrawn by proprietor for personal use ₹ 800 were not posted to Drawings account.
e. Bill receivable for ₹ 2,000 received from a debtor was not posted to Bills receivable account.

Trial balance of Anuj did not agree. It showed an excess credit of ₹ 6,000. He put the difference to suspense
account. He discovered the following errors.
a. Cash received from Ravish ₹ 8,000 posted to his account as ₹ 6,000.
b. Returns inwards book overcast by ₹ 1,000.
c. Total of sales book ₹ 10,000 was not posted to Sales account.
d. Credit purchases from Nanak ₹ 7,000 were recorded in sales Book. However, Nanak’s account was correctly
credited.
e. Machinery purchased for ₹ 10,000 was posted to purchases account as ₹ 5,000. Rectify the errors and prepare
suspense account.

Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following
errors:
a. Sales return book overcast by ₹ 800.
b. Purchases return to Sahu ₹ 2,000 were not posted.
c. Goods purchased on credit from Narula ₹ 4,000 though taken into stock, but no entry was passed in the books.
d. Installation charges on new machinery purchased ₹ 500 were debited to sundry expenses account as ₹ 50.
e. Rent paid for residential accommodation of madam (the proprietor) ₹ 1,400 was debited to Rent account as ₹
1,000.

Rectify the errors and prepare suspense account to ascertain the difference in trial balance
Give journal entries to rectify the following errors assuming that suspense account had been opened.
a. Goods distributed as free sample ₹ 5,000 were not recorded in the books.
b. Goods withdrawn for personal use by the proprietor ₹ 2,000 were not recorded in the books.
c. Bill receivable received from a debtor ₹ 6,000 was not posted to his account.
d. Total of Returns inwards book ₹ 1,200 was posted to Returns outwards account.
e. Discount allowed to Reema ₹ 700 on receiving cash from her was recorded in the books as ₹ 70.

Trial balance of Khatau did not agree. He put the difference to suspense account and discovered the following errors :
a. Credit sales to Manas ₹ 16,000 were recorded in the purchases book as ₹ 10,000 and posted to the debit of Manas as ₹
1,000.
b. Furniture purchased from Noor ₹ 6,000 was recorded through purchases book as ₹ 5,000 and posted to the debit of Noor
₹ 2,000.
c. Goods returned to Rai ₹ 3,000 recorded through the Sales book as ₹ 1,000.
d. Old machinery sold for ₹ 2,000 to Maneesh recorded through sales book as ₹ 1,800 and posted to the credit of Manish as
₹ 1,200.
e. Total of Returns inwards book ₹ 2,800 posted to Purchase account.

Rectify the above errors and prepare suspense account to ascertain the difference in trial balance.

Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors :
a. In the sales book for the month of January total of page 2 was carried forward to page 3 as ₹ 1,000 instead of ₹
1200 and total of page 6 was carried forward to page 7 as ₹ 5,600 instead of ₹ 5,000.
b. Wages paid for installation of machinery ₹ 500 was posted to wages account as ₹ 50.
c. Machinery purchased from R & Co. for ₹ 10,000 on credit was entered in Purchase Book as ₹ 6,000 and posted
there from to R & Co. as ₹ 1,000.
d. Credit sales to Mohan ₹ 5,000 were recorded in Purchases Book.
e. Goods returned to Ram ₹ 1,000 were recorded in Sales Book.
f. Credit purchases from S & Co. for ₹ 6,000 were recorded in sales book. However, S & Co. was correctly credited.
g. Credit purchases from M & Co. ₹ 6,000 were recorded in Sales Book as ₹ 2,000 and posted there from to the credit
of M & Co. as ₹ 1,000.
h. Credit sales to Raman ₹ 4,000 posted to the credit of Raghvan as ₹ 1,000.
i. Bill receivable for ₹ 1,600 from Noor was dishonoured and posted to debit of Allowances account.
j. Cash paid to Mani ₹ 5,000 against our acceptance was debited to Manu.
k. Old furniture sold for ₹ 3,000 was posted to Sales account as ₹ 1,000.
l. Depreciation provided on furniture ₹ 800 was not posted.
m. Material ₹ 10,000 and wages ₹ 3,000 were used for construction of building. No adjustment was made in the
books.

Rectify the errors and prepare suspense to ascertain the difference in trial balance.

. Rectify the following errors :

a. Salary paid ₹ 5,000 was debited to employee’s personal account.
b. Rent Paid ₹ 4,000 was posted to landlord’s personal account.
c. Goods withdrawn by proprietor for personal use ₹ 1,000 were debited to sundry expenses account.
d. Cash received from Kohli ₹ 2,000 was posted to Kapur’s account.
e. Cash paid to Babu ₹ 1,500 was posted to Sabu’s account

Rectify the following errors :

a. Sales book overcast by ₹ 700.
b. Purchases book overcast by ₹ 500.
c. Sales return book overcast by ₹ 300.
d. Purchase return book overcast by ₹ 200

Rectify the following errors assuming that suspension account was opened. Ascertain the difference in trial
balance.
a. Furniture purchased for ₹ 10,000 wrongly debited to purchase account as ₹ 4,000.
b. Machinery purchased on credit from Raman for ₹ 20,000 recorded through Purchases Book as ₹ 6,000.
c. Repairs on machinery ₹ 1,400 debited to Machinery account as ₹ 2,400.
d. Repairs on overhauling of second hand machinery purchased ₹ 2,000 was debited to Repairs account as ₹
200.
e. Sale of old machinery at book value ₹ 3,000 was credited to sales account as ₹