Rectification of Errors

1.Trial Balance: It is a Statement showing balances of various accounts in the ledger and the cash book at a particular date.

2.One - Sided Errors: Errors that effects the debit or credit side of a single account.
For Example:(a)Total of purchase book has been overcast by Rs5000.
(b)Return Inwards Book has been undercast by Rs4000.

3.Two- Sided Errors: Errors that affect two or more accounts.
(a)Errors of Recording  (b)Errors of Posting to wrong account    (c)Error of Principle
(d)Error of Complete omission.

4. Error of Posting: It means an entry being not posted at all or Partially or Being Posted by wrong amount or to the wrong account.
For Example: Credit sale of Rs 1700 to ram was recorded as 7100.
Credit sale of Rs 1700 to Mohan was recorded as sales to shyam.

5.Error of Balancing:It means calculating the balance in account wrongly.
For Example:Furniture Purchased on credit from Rohan for Rs30000 posted as Rs3000.

6.Error of Recording: It means recording the entry in subsidiary books wrongly.
For Example: Transaction related to sales book are recorded in purchase book.

7.Error of Principle: It means recording a transaction in the books of accounts which is not in accordance with the accounting principles.
For  Example: Paid wages for the construction of office debited to wages account Rs20000.

8.Errors of Omission: It means an error committed whereby a transaction is omitted to be recorded.
For Example: Credit sale of Rs 5000 to Ram omitted to be Recorded in the books.

9.Errors Of Commission: Errors caused by wrong recording of Transaction.   
For example: A Credit sale of goods for RS 7000 to Mr. David was erroneously debited to Mr. John’s Account.

10.Compensating Errors: Errors that compensate each other.
For example:  Shyam ’s  Account was debited with Rs100 instead of Rs 1000 while Ram Prasad Account was Debited with Rs 1000 instead of RS 100.
11.Suspense Account: It is an Account opened to temporarily tally the Trial Balance .

12.Rectifying Entries: Entries made in the books of accounts  for Correction of errors.