Rectification Entries

b) Rectification Entries:

              Some times, errors may occur while recording transactions, posting them into the ledger or while balancing the ledger accounts. In such cases, certain entries should be passed in order to rectify the errors. Such entries are called “Rectification Entries”. When there is an error in passing an entry, another entry (rectification entry) should be passed to nullify the effect of the previous incorrect entry.

Example:

             Let us imagine that the firm has paid Rs. 9,500 as Salaries. Let us presume the accountant wrote Rs.5, 900. This is an error. In order to rectify this error. (This entry must now be posted in the ledger)

Sol:           Salaries a/c …Dr       3,600

                         To Cash   a/c                       3,600

        (Being the error in noting down the salaries amount, now rectified)

Example:

              Rama paid Rs. 100. This was erroneously credited to Bheema’s a/c the rectification entry will be as follows: 

Sol:               Bheema’s a/c ……Dr          100

                                To Rama’s a/c                              100

        (Being the wrong credit given to Bheems’s a/c, now rectified)

Example:

             A businessman, instead of debiting the salary a/c with Rs. 10,000 debited the insurance a/c. Correct this entry.

Sol:      In order to rectify this error, we should debit the salary a/c with Rs. 10,000 and credit the insurance a/c. (Which was mistakenly debited) by Rs.10, 000. The entry will be as follows:

   

              Salary a/c………Dr      10,000

                        To Insurance a/c                   10,000

          (Being wrong debit given to insurance a/c, now rectified)