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The procedure for passing a rectifying entry is as follows:Step 1. Write on the rough paper the wrong entry which has actually been passed. Step 2. Write on a rough paper the reverse of the wrong entry.Step 3. Write on a rough paper the correct entry which should have been passed.Step 4.Pass in the Journal Proper the rectifying entry which will be the net effect of the correct entry (Step 3) and reverse of the wrong entry (Step 2).Let us explain withe example how the two-sided errors are rectified.(ii) Rs. 1,000 received from Kamal Kishore has been credited in the account of Krishna Kishore. Pass the rectifying entry. |
Answer» Solution : Notes: 1.If error is at the posting stage, then ASSUME that recording in the original BOOKS (i.e., subsidiary books) has been done correctly. 2. If a TRANSACTION is recorded in the Cash Book (like in GIVEN case), then the error in posting relates to the other AFFECTED account, not to the Cash/Bank Account. |
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