DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : P. Sankara Rao
Designation : Lecturer
Branch : Commercial & Computer Practice
(CCP)
Institute : Govt. Polytechnic, Srikakulam
Year/Semester : I Year
Subject : Accountancy I
Subject Code : CCP102
Topic : Rectification of Errors
Duration : 50 Mts
Sub Topic : Examples & Exercises of Errors not
disclosed by Trial Balance

Teaching Aids : PPT CCP

& 102.108
Animation 1
Objectives :

On completion of this period, you would be able to:

 Understand the concept of errors not

disclosed by trial balance
 Rectify all the errors not disclosed by trial
balance

CCP 102.108 2
Recap :

 Errors disclosed by trial balance are also known

as “one side errors” as these errors occur in only
one account
 To rectify the errors not discloses by trial
balance, a rectification entry is passed

CCP 102.108 3
Example 1 :
Salary paid Rs.600 not recorded in the books of
account

Correct Entry:
Salary A/c Dr 600
To Cash A/c 600
Error:
This is an error of omission. Entire transaction
was omitted. Both salary and cash accounts
were not affected
Rectification:
Salary A/c Dr 600
To cash A/c 600
CCP 102.108 4
Example 2 :
Bought goods from Kalyan Rs. 7000 but entered in
the books as Rs. 700

Correct Entry:
Purchases A/c Dr 7000
To Kalyan A/c 7000
Error:
Instead passing the entry with Rs. 7000 it is
passed with Rs. 700

Rectification:
Purchases A/c Dr 6300
To Kalyan A/c 6300
CCP 102.108 5
Example 3 :
Bought machinery Rs. 3000 debited to purchases
A/c

Correct Entry:
Machinery A/c Dr 3000
To Cash A/c 3000
Error:
This is an error of principle. Instead of
debiting machinery account, it is debited to
purchases account

Rectification:
Machinery A/c Dr 3000
To Purchases A/c 3000
CCP 102.108 6
Example 4 :
Goods returned from Anand Rs. 90 recorded as
Rs.900
Correct Entry:
Sales returns A/c Dr 90
To Anand A/c 90
Error:
Instead of passing the entry with Rs. 90 the
entry is passed with Rs 900(excess amount)

Rectification:
Anand A/c Dr 810
To Sales Returns A/c 810

CCP 102.108 7
Exercise 1 :
Rectify the following errors:

3. Machinery purchase Rs. 8000 debited to

purchases A/c.
4. A credit sale of Rs.500, though recorded in
sales book debited to Uma account as Rs.50.
5. A credit sales made to Jagan Rs.500 entered in
sales day book as Rs.50.
6. Miscellaneous expenses Rs.75 included in
proprietor’s account.
CCP 102.108 8
Solution to Exercise 1 :

1. Machinery A/c Dr 8000

To Purchase A/c 8000

2. Uma A/c should be debited with Rs.450/-

3. Jagan A/c Dr 450

To Sales A/c 450

4. Misc Expenses A/c Dr 75

To Drawings A/c 75

CCP 102.108 9
Exercise 2 :

Rectify the following errors:

3. Repairs to furniture Rs. 200 was debited to

furniture account.
4. Salary paid to Prasad Rs. 200 was omitted.
5. General expenses Rs. 65 paid to Mr. Krishna
was debited to his personal account.
6. Rent paid Rs. 940 was entered as Rs. 490.

CCP 102.108 10
Solution to Exercise 2 :

1. Repairs A/c Dr 200

To Furniture A/c 200

1. Salary A/c Dr 200

To Cash 200

3. General Expenses A/c Dr 65

To Krishna A/c 65

4. Rent A/c Dr 450

To Cash A/c 450

CCP 102.108 11
Summary :

 Two sided errors are rectified by Journal Entries

 Two sided errors does not effect the assessment

of Trial Balance

CCP 102.108 12
Quiz :

1. When susppense a/c is not opened One sided errors

are rectified by
a) Narration
b) Journal Entry
c) None
2. Two sided errors does not effect
a) Trial Balance
b) Balance Sheet
c) None

CCP 102.108 13
Assignment 1 :
Rectify the following errors:

3. Rent paid to Mr. Rao 220 wrongly debited to his

personal account.
4. A credit sales of Rs. 9000 to Raghu was
omitted to be recorded.
5. Machinery installation charges Rs. 300 omitted
to be entered in the day book.
6. Old furniture Rs. 1000 credited to Sales
account.
CCP 102.108 14
Assignment 2 :

Rectify the following errors:

3. Cash received from Jagan Rs. 300 was credited

to Mohan a/c.
4. Trade expenses Rs. 18 posted as Rs. 81.
5. A bill receivable for Rs. 155 was written in bills
payable book.
6. Furniture purchased from Khadar & co.Rs. 1000
was recorded in purchases book.

CCP 102.108 15