Rectification of Errors Questions With Answers
Accounts are prepared by an accountant, a human being is likely to commit mistakes at the time of recording and posting in the books. However, such errors are located after some time and should be corrected by passing a corrective journal entry, which is known as rectification of errors.
Rectification of errors is referred to as the procedure of revising mistakes made in recording transactions. These mistakes can occur while posting entries to ledger accounts, classifying accounts, carrying a balance forward, etc. Rectification of errors that do not influence the trial balance include errors that involve errors on both sides of debit and credit and can be rectified by passing a journal entry. These errors impact two accounts simultaneously and are therefore known as two-sided errors. The errors can occur both on the debit and credit side of the account and need to be corrected or rectified by passing a journal entry to correct the debit and credit.
Rectification of Errors Questions With Answers
Question-01: What are the errors of the account?
Answer: Errors of account are mistakes or omissions made by accounting assistants and accountants due to a lack of expertise, incompetence, carelessness, job strain, whimsy, or inattention.
Question-02: How many types of errors are there?
Answer: There are two types of errors:
- One-sided errors or errors detected by a trial balance.
- Two-sided errors or Errors are not detected by trial balance.
Question-03: What are one-sided errors?
Answer: Double entries are more or less recorded in one direction as a result of one-sided errors. The trial balance differs as a result of the mistake, and the trial balance is temporarily balanced with an uncertain or suspense account.
Question-04: What are the different types of one-sided errors?
Answer: the different types of one-sided errors are as follows:
- Errors in posting from journal to ledger.
- Errors in writing balances from ledger to trial balance.
- Errors in casting & balancing.
Question-05: What are the reasons for occurring errors in posting from journal to ledger?
Answer: the reasons for occurring errors in posting from journal to ledger are as follows:
- When moving an account from the journal to the ledger, the sum of money is misspelled.
- During the transfer from the primary book to the ledger account, the sum of money is written on the wrong side of the account.
- If one side of a transaction is properly recorded in the ledger but the other side is not.
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