#Rectification of accounting errors #Account #Class 11 account #Account rectification of accounting errors # Rectification of one sided errors #Rectification of two sided errors #लेखा सम्बन्धी गल्तिको सुधार

Class 11, Rectification of accounting errors, Prepared by Pralhad Sapkota, Pragati Secondary School, Hetauda – 9, Makawanpur, Nepal
Chapter 11: Rectification of Accounting Errors n]vf;DaGwL uNtLx?sf] ;'wf/
Meaning & concept of Accounting Error n]vf;DaGwL uNtLsf] cy{ tyf cjwf/0ffM

Causes of accounting error n]vf;DaGwL uNtLsf sf/0fx?M
a. Wrong posting unt k|ljli6
b. Wrong totaling unt hf]8
c. Wrong balancing unt z]if lgwf{/0f
d. Computer related problem sDKo"6/ ;DaGwL ;d:ofx?
e. Omission 5'6
Types of accounting error n]vf;DaGwL uNtLsf k|sf/x?M
1. Errors based on their nature
A. Clerical Errors z'4tf;DaGwL uNtLx?
a. Errors of omission 5'6 ;DaGwL uNtL
b. Errors of commission k|ljli6 jf clen]v ;DaGwL uNtL
c. Compensating errors Ifltk"/s uNtLx?
d. Errors of duplication bfxf]/f] n]vg uNtLx?
B. Errors of Principles ;}4flGts uNtLx?
• Errors in rules, principles and assumptions
• Example: Furniture purchase- Purchase a/c Dr instead of Furniture a/c Dr

2. Errors based on disclosed by trial balance
A. Errors disclosed/shown by trial balance ;Gt'ng k/LIf0f4f/f JoQm ul/g] -kQf nfUg]_ uNtLx?
a. Wrong totaling or casting of the subsidiary book ;xfos vftfx?sf] unt hf]8 jf u0fgf
b. Posting an amount on the wrong side unt kIfdf k|ljli6
c. Posting on the wrong amount unt /sdsf] k|ljli6
d. Partial omission of an amount to post into accounts s'g} cf+lzs /sd vftfdf k|ljli6 ug{ 5'6 x'g'
e. Wrong balancing of the account vftfsf] z]if /sd unt x'g'
f. Bringing down wrong balance from ledger vftfaf6 unt z]if /sd n}hfFbf
B. Errors not disclosed/not shown by trial balance ;Gt'ng k/LIf0f4f/f JoQm gul/g] -kQf gnfUg]_ uNtLx?
a. Errors of Principles ;}4flGts uNtLx?
b. Errors of complete omission k"0f{ 5'6 ;DaGwL uNtLx?
c. Error of commission (Posting wrong amount in subsidiary book & ledger both)
;xfos k'l:tsf / n]h/ b'a}df unt /sd clen]v -k|ljli6_ u/]sdf
d. Errors of compensating Ifltk"/s uNtLx?
e. Errors of duplication bfxf]/f] n]vg uNtLx?

Your Assignment
Read and write about meaning, causes and different types of
accounting errors with suitable example

Methods of locating accounting errors n]vf;DaGwL uNtLx? kQf nufpg] tl/sfx?M

Rectification of accounting errors n]vf;DaGwL uNtLx?sf] ;'wf/M

Methods of Rectification of accounting errors
n]vf;DaGwL uNtLx?sf] ;'wf/ ug]{ tl/sfx?M
(Make rectified ledger)
(Make rectified journal entry by using formula) (Make rectified journal entry by using formula)
(Make rectified journal entry by using suspense account)
Remember:
One (Single) sided errors Ps kIfLo uNtLx?M Overcast/over recorded, undercast/under recorded in one account/side by mistake
which affect only one side of account.
Two (Double) sided errors b'O{ kIfLo uNtLx?M The errors that affect two or more accounts/sides (Error from complete omission,
commission, principles and compensating)

A. Rectification of errors located before preparation of trial balance ;Gt'ng k/LIf0fsf] tof/L ug'{eGbf klxn] kQf nufO{Psf uNtLx?sf] ;'wf/M
1. Rectification of One (Single) sided errors Ps kIfLo uNtLx?sf]
;'wf/M
Remember:
Assets, Expenses, Losses, Purchase and sales return: debited account
Capital, Liabilities, Income, Profit/Gain, Sales and purchase return: credited account
,Purchase &sales return
Sales & purchase return
Credited account
debited account debited account
Credited account

Some
Examples of
One Sided
Errors

a. Purchase book was overcast by Rs. 2,000
(ie, One sided error: Debited account overcast)
Solution:
b. Purchase book was undercast by Rs. 500
(ie, One sided error: Debited account undercast)
Solution:
c. Sales book was overcast by Rs. 3,000
(ie, One sided error: Credited account overcast)
Solution:
d. Sales book was undercast by Rs. 1,000
(ie, One sided error: Credited account undercast)
Solution:

Assignment
Asmita’s Example- 1
&
Numerical problems - A: 1
Thank you

Numerical Problems: A:

i. Credit sales to Ram Rs. 5,000 posted in his account Rs. 500 only.
(ie, One sided error: Ram’s (Debited) account undercast by Rs 4,500)
Solution:
j. Goods sold to Hari for Rs. 150 on credit but debited to his account of Rs. 510 .
(ie, One sided error: Hari’s (Debited) account overcast by Rs 360)
Solution:
Example 1:

k. Discount allowed Rs. 50 not posted in ledger.
(ie, One sided error: Discount allowed (Debited) account omitted/under casted)
Solution:
l. Discount received from Janak was not posted to his account Rs. 400.
(ie, One sided error: Janak’s (Debited) account omitted/under casted)
Solution:

m. Credit purchase of Rs. 2,000 was posted in the credit side of purchase account.
(ie, One sided error: Purchase (Debited) account omitted and recorded opposite side)
Solution:
n. Credit sales of Rs. 5,000 was debited in sales account.
(ie, One sided error: Sales (credited) account omitted and recorded opposite side)
Solution:

Numerical Problems: A. 2:
a. Posted wrongly Rs. 7,000 instead of Rs. 700 on the debit side of Manoj’s account.
(ie, One sided error: overcasting in debit side of Manoj account)
Solution:
b. Posted Rs. 3,000 wrongly on the debit side instead of credit side of sales account.
(ie, One sided error: Sales (credited) account omitted and recorded opposite side)
Solution:

c. Posted Rs. 3,000 wrongly on credit side instead of debit side of purchase account.
(ie, One sided error: omitted and recorded in opposite side of purchase (debited) account)
Solution:
d. Cash of Rs. 3,000 received from Seema was posted twice in her account.
(ie, One sided error: Seema’s (credited) account double recorded/over casted in same side)
Solution:

Example 4 in Nepali medium and 5 in English medium

Assignment
Example- Asmita’s 4 Nep and 5 Eng med
&
Numerical problems - A: 2
Thank you

A. Rectification of errors located before preparation of trial balance
;Gt'ng k/LIf0fsf] tof/L ug'{eGbf klxn] kQf nufO{Psf uNtLx?sf] ;'wf/M
2. Rectification of Two (Double) sided errors b'O{ kIfLo uNtLx?sf] ;'wf/M
Remember: Two (Double) sided
errors b'O{ kIfLo uNtLx?M The
errors that affect two or more
accounts/sides (Error from
complete omission, commission,
principles and compensating)

Some
examples of
two sided
errors

Use formula
RE= CE÷WE
Where, RE= Rectified Journal Entry
CE= Correct Journal Entry
WE= Wrong Journal Entry
: Rectified Journal Entry = Correct Journal Entry ÷ Wrong Journal Entry

Working notes
Correct Entry:
Salary a/c Dr 1,000
To Cash a/c 1,000
Wrong Entry:
Wages a/c Dr 1,000
To Cash a/c 1,000
Rectified Entry = CE ÷ WE
Or, Salary a/c Dr 1,000
To Cash a/c 1,000
Or, Salary a/c Dr 1,000
To Cash a/c 1,000
÷ Wages a/c Dr 1,000
To Cash a/c 1,000
x Cash a/c Dr 1,000
To Wages a/c 1,000
Date Particulars LF Dr. Rs. Cr. Rs.
1. Salary a/c Dr
To Wages a/c
(Being salaries paid but
wrongly debited in wages
a/c, now rectified)
1,000
1,000
Rectified Journal Entry
1
2
3
2
÷
1
2
2
3
x
1
3

Working notes
Correct Entry:
Cash a/c Dr 200
To Interest a/c 200
Wrong Entry:
Cash a/c Dr 200
To Commission a/c 200
Or, Cash a/c Dr 200
To Interest a/c 200
Or, Cash a/c Dr 200
To interest a/c 200
÷ Cash a/c Dr 200
To Commission a/c 200
x Commission a/c Dr 200
To Cash a/c 200
2. Commission a/c Dr
To Interest a/c
(Being interest received but
wrongly credited in
commission a/c, now rectified)
200
200
2
5
2
3
÷
2
5
3
2
x
3
5

Working notes
Correct Entry:
Salary a/c Dr 300
To Cash a/c 300
Wrong Entry:
Ram’s a/c Dr 300
To Cash a/c 300
Or, Salary a/c Dr 300
To Cash a/c 300
Or, Salary a/c Dr 300
To Cash a/c 300
÷ Ram’s a/c Dr 300
To Cash a/c 300
x Cash a/s Dr 300
To Ram’s a/c 300
3. Salary a/c Dr
To Cash a/c
(Being salary paid to Ram but
wrongly debited to his personal
a/c, now rectified)
300
300
2
3
5
3
÷
2
3
3
5
x
2
5

Working notes
Correct Entry:
Machinery a/c Dr 100
To Cash a/c 100
Wrong Entry:
Wages a/c Dr 100
To Cash a/c 100
Or, Machinery a/c Dr 100
To Cash a/c 100
Or, Machinery a/c Dr 100
To Cash a/c 100
÷ Wages a/c Dr 100
To Cash a/c 100
x Cash a/s Dr 100
To Wages a/c 100
4. Machinery a/c Dr
To Wages a/c
(Being wages paid to install
machinery but debited into
wages a/c, now rectified)
100
100
2
3
5
3
÷
2
3
3
5
x
2
5

Working notes
Correct Entry:
Purchase a/c Dr 40
To Ram’s a/c 40
Wrong Entry:
Ram’s a/c Dr 40
To Sales a/c 40
Or, Purchase a/c Dr 40
To Ram’s a/c 40
Or, Purchase a/c Dr 40
To Ram’s a/c 40
÷ Ram’s a/c Dr 40
To Sales a/c 40
x Sales a/s Dr 40
To Ram’s a/c 40
5. Purchase a/c Dr
Sales a/c Dr
To Ram’s a/c
(Being Purchase from Ram but
recorded as sales to Ram, now
rectified)
40
40
80
2
3
3
5
÷
2
3
5
3
x
10
9

Working notes
Correct Entry:
Hari’s a/c Dr 200
To Sales a/c 200
Wrong Entry:
Purchase a/c Dr 200
To Hari’s a/c 200
Or, Hari’s a/c Dr 200
To Sales a/c 200
Or, Hari’s a/c Dr 200
To Sales a/c 200
÷ Purchase a/c Dr 200
To Hari’s a/c 200
x Hari’s a/s Dr 200
To Purchase a/c 200
6. Hari’s a/c Dr
To Sales a/c
To Purchase a/c
(Being good sold to Hari but
recorded as purchase form
Hari, now rectified)
400
200
200

Student’s Work: Complete CW: Asmita’s, Page 250: Error 1 to 6
And Numerical problems - B: 5,6,7(d)& 8
One sided
errors

Thank You

Asmita Publication book’s Solutions

Credit

Thank you

B. Rectification of errors located after preparation of trial balance ;Gt'ng k/LIf0fsf] tof/L kl5 kQf nufO{Psf uNtLx?sf] ;'wf/M
1. Rectification of One (Single) sided errors Ps kIfLo uNtLx?sf] ;'wf/M
Use Suspense Account in Rectified Journal Entry
,Purchase & sales return
and purchase return
Credited account
Debited account
Sales,

B. 1. Rectification of one sided errors located after preparation of trial balance
;Gt'ng k/LIf0fsf] tof/L kl5 kQf nufO{Psf Ps kIfLo uNtLx?sf] ;'wf/M
Use Suspense Account in Rectified Journal Entry
Account / Books
Debited Account of Trial Balance :
Assets, Expenses, Losses, Purchase
and Sales Return
If Undercast by mistake
RE: Related ;DaGwLt a/c Dr. xxx
To Suspense a/c xxx
( Being ………………… , now rectified)
If overcast by mistake
RE: Suspense a/c Dr. xxx
To Related ;DaGwLt a/c Dr. xxx
(Being ……………… , now rectified)
Credited Account of Trial Balance:
Capital, Liabilities, Income, Profit/gain,
Sales and Purchase return
RE: Suspense a/c Dr. xxx
To Related ;DaGwLt a/c Dr. xxx
(Being ……………… , now rectified)
RE: Related ;DaGwLt a/c Dr. xxx
To Suspense a/c xxx
( Being ………………… , now rectified)

Some Examples:
Following errors detected after preparation of trial balance:
a. Purchase account was undercast by Rs. 500.
b. Sales return book was overcast by Rs. 100.
c. Purchase return account was undercast by Rs. 300.
d. Sales book was overcast by Rs. 400.
Required: Entries for rectification
Solution: Rectified Journal Entries
a. Purchase a/c Dr.
To Suspense a/c
(Being purchase account was
undercast now rectified)
500
500
b. Suspense a/c Dr.
To Sales return a/c
(Being sales return book was overcast
now rectified)
100
100
c. Suspense a/c Dr.
To Purchase return a/c
(Being purchase return account was
undercast now rectified)
300
300
d. Sales a/c Dr.
To Suspense a/c
(Being sales book was overcast now
rectified)
400
400

B. Rectification of errors located after preparation of trial balance
;Gt'ng k/LIf0fsf] tof/L kl5 kQf nufO{Psf uNtLx?sf] ;'wf/M
Use formula
RE= CE÷WE
Where, RE= Rectified Journal Entry
CE= Correct Journal Entry
WE= Wrong Journal Entry
: Rectified Journal Entry = Correct Journal Entry ÷ Wrong Journal Entry
Same as
rectification of
errors located
before preparation
of trial balance

Student’s Work:
Asmita Pub. Book:
Numerical Problems: 3,4,9,10 and 11.

#Rectification of accounting errors #Account #Class 11 account #Account rectification of accounting errors # Rectification of one sided errors #Rectification of two sided errors #लेखा सम्बन्धी गल्तिको सुधार

Recommended

Recommended

More Related Content

More from Pragati Secondary School Hetauda- 9, Makawanpur, Nepal

More from Pragati Secondary School Hetauda- 9, Makawanpur, Nepal (15)

Recently uploaded

Recently uploaded (20)

#Rectification of accounting errors #Account #Class 11 account #Account rectification of accounting errors # Rectification of one sided errors #Rectification of two sided errors #लेखा सम्बन्धी गल्तिको सुधार