To erro is human. This is the reason that in spite of being careful and sometimes due to carelessness, different types of errors are made by the accountant. Some inaccuracies or errors are such that they do not affect the total of trial balance; But there are some errors which affect the sum of trial balance. In order to reveal the true position of the business, it is necessary that errors are detected and necessary accounts are made for correction. This action is called ‘correction of inaccuracies or errors’. The procedure followed to rectify the errors committed in the book of accounts and to set right accounting records is called Rectification of Errors. In fact, some people think that by erasing the errors with an eraser, a clean account should be made in their place, or by cutting out the error, making a clean account in its place and signing it there, but by doing this, the accounts get mutilated and dirty. will go and the accounts will not be reliable, so it would be appropriate that Accounting Entries should be made for the correction of errors. The adverse effects of errors can be neutralized and cancelled by accounting entries

1. Meaning of Rectification of Errors :
To erro is human. This is the reason that in spite of being careful and sometimes due to
carelessness, different types of errors are made by the accountant. Some inaccuracies or
errors are such that they do not affect the total of trial balance; But there are some errors
which affect the sum of trial balance. In order to reveal the true position of the business, it is
necessary that errors are detected and necessary accounts are made for correction. This
action is called ‘correction of inaccuracies or errors’.
The procedure followed to rectify the errors committed in the book of accounts and to set
right accounting records is called Rectification of Errors.
In fact, some people think that by erasing the errors with an eraser, a clean account should
be made in their place, or by cutting out the error, making a clean account in its place and
signing it there, but by doing this, the accounts get mutilated and dirty. will go and the
accounts will not be reliable, so it would be appropriate that Accounting Entries should be
made for the correction of errors. The adverse effects of errors can be neutralised and
cancelled by accounting entries.
Objectives of Rectification of Errors :
Correction of errors has the following objectives.
(1) Preparation and maintenance of accurate accounting records.
(2) Determining the correct profit or loss for the accounting period.
(3) Preparation of a correct balance sheet so that it reflects the true and fair financial position
of the undertaking.
If the errors are not rectified
(1) The profit and loss account will not reflect the true profit or loss.
(2) The balance sheet will not reflect the true and correct financial position.
(3) Defective accounts can create problems at various stages of the business.
Classification of Rectification of Errors
The most important factor for correction of errors is the time element i.e. we should see
when the errors are detected. Therefore, from the point of view of accounting, correction of
errors can be divided into three categories:
Rectification of errors
(1) Before preparing trial balance

2. (2) After preparing trial balance
(3) After preparation of final accounts/balance sheet
The study will be done under the following headings :
( 1 ) One – Sided Errors
( 2 ) Double – Side Errors
Rectification of errors before preparing trial Balance
Rectification of One – side errors
When the error is in only one account or the error affects only one side of an account, such
error is called One -Side error. This type of error is rectified by debiting or crediting the
affected account as the case may be. There is no need to make a journal entry for this.
This type of error can be divided into the following categories :
(1) Errors of Casting
(2) Errors of Posting
(3) Errors in Carry Forward
(4) Errors of Balancing
(1) Errors of Casting —- There can be a mistake in applying the sum of the assistant. The
total can be less (Short, Under casting) or more (Overcasting). Applying less yoga or
applying more yoga will be called impurity.
1 ( Under casting or added Short ) — (a) Accounts which have Debit Balance, if their totals
have been written less (Under casting, Added Short), then for its correction To Under casting
of Book – ₹…….. is written in the debit side of that account. goes. For example, this should
be done if the sum of Purchases Book, Bills Receivable Book, Sales Returns Book etc. is
reduced.
(b) Accounts which have Credit Balance, if their totals are written less, then for its
improvement, By Under casting of…Book-₹….. should be written in the credit side of that
account. For example, this should be done if the sum of Sales Book, Bills Payable Book,
Purchases Returns Book etc. is reduced.
2 ( Over casting ) — (a) If the sum of the accounts having Debit Balance is more, then for its
improvement, the same amount should be written in the credit side of these accounts. Like-
Purchases Book, Sales Returns Book or Returns Inward Book, Bills Receivable Book will be
written on their credit side as follows: By Over casting of …..Book…..– ₹ ….

3. (b) In order to rectify the overcasting of such accounts which have credit balance, it will be
written in the debit side as follows
To Over casting of ……
For example, this will be done to purify Overcasting in Sales Book, Bills Payable Book,
Purchases Returns Book.
( 2 ) Errors of Posting — (a) Writing less amount at the time of writing :
Sometimes, while writing a book, the correct amount is written in one account, but less
amount is written in the other account. To remove this type of inaccuracy, the concerned side
of that account writes the amount by writing wrong posting of the amount; As
Qs 1 > Paid ₹ 250 to Sohan, correctly entered in cash Book, but personal Account of sohan
was debited with ₹ 250 Only.
Ans > The following entry will be made on the debit side of Sohan’s account so as to correct
the mistake of ₹ 250-205 = ₹ 45
To wrong posting of the amount ₹ 45
Sohan’s Account
Dr.
To Wrong posting of the account ₹ 45
Qs 2 > Received ₹ 612 from Shekhar has been posted to his credit as ₹ 126.
Ans > ₹ 612 – 126 = ₹ 486 will be added to the credit side of Shekhar’s account By Wrong
posting of the Amount ₹ 486
(b) Excess amount written at the time of posting :
Sometimes excess amount is entered by mistake at the time of posting. In such a situation,
the amount of difference should be ascertained first and the amount of difference should be
written on the other side of the account; As
Qs 1 > Amrita was given ₹ 560 but her account was debited for ₹ 650 by mistake.
Ans > To remove this error, ₹ 650-560 ₹ = 90 will have to be deposited in Amrita’s account.
Qs 2 > Received ₹ 120 from Anil kapoor correctly entered in the cash book but the personal
A/c of Anil kapoor was credit by ₹ 210
Ans > To rectify this mistake, debit side of Anil Kapoor’s account ( 210-120 ) will have to
write ₹ 90 as follows:

4. To Difference in amount posted ₹ 90
(C) Amount posted on the wrong side while posting :
Sometimes, while posting in the ledger, credit instead of debit or debit instead of credit is
posted in the ledger. To remove this type of error, the sum of two amounts should be written
in the right side, that is, this amount which should have been written in this account, but was
not written in the side in which the account should not have been done, but was done, Its
amount, such as:
Qs > There was an amount of ₹ 83.60 in the credit side of Awadhesh’s account but ₹ 38.06
has been written in the debit side of his account.
Ans > ₹ 83.60 + 38.06 = ₹ 121.66 has to be debited to the credit side of Awadhesh’s
account, so that the debit can be neutralised and the credit can be affected.
By posting on the wrong side ₹ 121.66
(d) Missed Posting :
Sometimes while doing Khatauni posting is done correctly in one account but posting is
missed in another account. In such a situation, for the rectification of errors, the missing
amount will be written in the name of the concerned account or on the deposit side, as the
case may be.
For example, while posting on the debit side of the cash book, the discount of ₹ 25 given to
Abhay was missed. This means that Abhay’s account is short credited by ₹ 25. So for
correction we will credit Abhay’s personal account by ₹ 25.
By omission in posting of discount ₹ 25
Rectification of Double – sided or Two – side errors
Bilateral errors affect two accounts. Hence, they are rectified through journal entries. To
correct double-sided errors, one account is debited and the other is credited. The question
arises that how to make entries for correction?
Correction Method :
( 1 ) First of all the correct entry which should have been there should be written.
( 2 ) After that the wrong entry which has happened should be written.
( 3 ) Rectified Entry should be written by comparing the above two accounts.

5. In fact, to correct bilateral errors, first the correct account and the impure account should be
written in the rough. After this, the account which is common in both the accounts should be
struck off the pencil and a rectified entry should be made on the basis of the remaining
accounts. Wrong entry should be reversed for rectification. Making a corrected entry nullifies
the effect of errors.
( 1 ) If the error is related to two accounts and is in the same side and correction of
theoretical errors – Sometimes the account which is to be set off is not debited and another
account is debited. For example, Rs 500 was spent on repairing the building. By mistake this
amount was debited to the wages account.
(1) Correct Entry that should have been
Repairs A/c Dr.
To Cash A/c
(2) Entered by mistake
Wages A/c Dr.
To Cash A/c
(3) Rectifying Entry
Repairs A/c Dr.
To Wages A/c
(Being building repairs wrongly debited to wages A/c now rectified)
Rectification of errors
Since Cash A/c has been credited in both the entries, we will skip this Common Entry. Since
Repairs A/c is to be opened (it is to be debited) and Wages A/c is to be closed, therefore
Wages A/c which has already been debited, will be credited by reversing it.
Note – Only the third entry will be done in the question and answer, the first two should be
shown in the rough only.
(2) When instead of crediting a proper account another account is credited – e.g. ₹ 1000
received from A. Prasad is wrongly credited to R. Prasad’s account.
(1) Correct Entry that should have been
Cash A/c Dr.
To A. Prasad
(2) Entered by mistake
Cash A/c Dr.
To R. Prasad

6. (3) Rectifying Entry
R. Prasad Dr.
To A. Prasad
(Being amount received from A. Prasad wrongly credited to R. prasad, now rectified)
(3) Sometimes mistakes are also made due to mistakes in understanding Capital
Expenditure and Revenue Expenditure. For example, considering capital expenditure as
revenue expenditure and income expenditure as capital expenditure. Such errors are called
Errors of Principles. To remove these types of errors, the same methods are adopted which
have been accounted for above.
Example – ₹ 2,000 was spent on repairing a machine but Machinery Account was debited
by mistake. To rectify this, the following entry will be made
Repairs A/c Dr 2,000
To Machinery A/c 2,000
(Being expenses of repairs charge to machinery A/c, now rectified)
(4) Errors of Omission — Missing errors are of the following two types:1—- Errors of
complete omission — If a transaction is not recorded in the journal or books, then it is called
a completely missed error. A simple journal entry should be made to correct this type of
error.
Example A credit sales of goods worth ₹ 1,000 to saved was omitted to be entered in the
sales book
Zaved Dr. 1,000
To Sales A/c 1,000
(Being goods sales on credit not credited in the ledger)
2 – Errors of partial omission — Sometimes the transactions are accounted for in the
concerned subsidiary only but are not debited to the other account, then it is called partial
omission error. Suspense Account or Suspense Account is used to correct this type of
mistake.
For example — ( Qs 1) Goods purchased on credit from Shyam ₹ 2,000. The account of its
purchase was done in the same but was not deposited in Shyam’s account.
Suspense A/c Dr. 2,000
To Shyam A/c 2,000
(Being goods purchased on credit not credited in the ledger)

7. ( 5 ) When there is excess debit/credit in one account and excess credit in the other – in
such a situation, reverse the entry by the amount of excess debit/credit (i.e. by the amount of
the difference).
For example
( Qs 1. ) Pankaj sold goods worth ₹ 215 to Prakash but ₹ 251 was debited in the sales book.
Ans :: The amount of difference is ₹ 251 – 215 = ₹ 36, that means the amount of sale has
increased by ₹ 36. Hence the following entry to correct do
Sales A/c Dr. 36
To Prakash 36
(Being sales excess credited by ₹ 36, now rectified)
Sometimes the accounting of transactions in the journal is correct but the amount is
shown less or more. —
If less amount has been written then first it should be seen that how much less amount has
been shown in the entry. A fresh correction entry should be made of the lesser amount
shown. If the amount shown is more, the difference amount will be shown by entering the
opposite.
For Example
( Qs 1. ) A Purchases of ₹ 1,000 from Rahim entered in the Purchases day book as ₹ 100.
Give rectifying entry
(1) Correct Entry that should have been
Purchases A/c Dr. 1,000
To Rahim A/c 1,000
(2) Entry entered by mistake
purchases A/c Dr. 100
To Rahim’s A/c 100
Hence difference = ₹ 1,000 – 100 = ₹ 900 for which correction entry will be made.
(3) Rectifying Entry
Purchases A/c Dr. 900
To Rahim’s A/c 900

8. (Being rectifying entry made)
Note :: Only Step 3 entry should be done in the exam.
( 5 ) Errors affecting more than Two Accounts – Some errors affect more than two
accounts. In such a situation, for their rectification, debit/credit the affected accounts as per
the requirement. Ordinarily the accounts which were to be debited and were not debited, will
be debited; Accounts that were erroneously credited will be debited and the customer’s
personal account will be credited with double the amount.
Similarly, the accounts which should have been credited and were not credited, will be
credited; The account that was debited by mistake will also be credited and the personal
account will be debited by double the amount.
For example :: Rs 5,000 was purchased from Satyam which was wrongly entered in the
Sales Book
(1) Correct Entry that should have been
Purchases A/c Dr. 5,000
To Satyam’s A/c 5,000
(2) Entry entered by mistake
Satyam’s A/c Dr. 5,000
To Sales A/c 5,000
(3) Rectifying Entry
Purchases A/c Dr. 5,000
Sales A/c Dr. 5,000
To Satyam’s A/c 10,000
Frequently Asked Questions
Qs 1. What are the 3 stages of rectification of errors?
Ans. The 3 stages of rectification of errors
(1) Before preparing trial balance
(2) After preparing trial balance
(3) After preparation of final accounts/balance sheet
Qs 2. What is rectification of errors and its types in account

9. Ans. In summary, rectification is an important process in accounting that ensures that
financial statements are accurate and reliable. There are different types of rectification
methods that can be used to correct errors and mistakes in the accounting process.
Read more : Basic Accounting Terms Class 11
Read more : Classification of Errors
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