Chapter 1: Rectification of errors

The errors affecting trial balance must be detected and rectified in order to reveal a true picture of business.


The information regarding arithmetical errors while preparing a journal, posting in ledger and extracting balances of accounts can be obtained by preparing a trial balance.
If the debit and credit side of trial balance tallies, then there is no arithmetical error in recording the transactions and posting and extracting balances of accounts. However, if the trial balance does not tally, it means there must be some error in writing the books of accounts. Due to this, the process of detecting and rectifying the errors is inevitable. This process is called Rectification of errors. There are various objectives of rectifying errors. For instance, to rectify errors detected before or after preparing a trial balance, to determine true profit or loss, to show true financial position by preparing balance sheet based on correct information obtained by rectifying the errors.
As per the rules of accounting, if there is an error in amounts recorded in accounts, it cannot be rectified by deleting the same. To rectify the error, an accounting effect is given related to the respective error. Thus, rectification of errors is extremely important in accounting system.
In this course:
+ Introduction
+ Types of Accounting errors
+ Errors that affect and errors that do not affect trial balance
+ Effects of reconciliation on Profit - loss


We are pioneers in the field of Modern Teaching for Commerce Students since year 2000. We have multiple Locations in Gujarat and thousands of Students have lived and learned @ U WILL.

204 & 301 Turning Point Complex
Nr. ABS Tower
O.P. Road
Vadodara, Gujarat, India - 390007
Our branch
204 & 301 Turning Point Complex
Nr. ABS Tower
O.P. Road
Vadodara, Gujarat, India - 390001