Chapter – 8 | Rectification of Errors

In the previous chapter we have learnt that a Trial Balance is prepared to check the arithmetic
accuracy of transactions recorded in a Journal posting them into the ledger and balancing the ledger
account. If a Trial Balance agrees it is assumed that recording posting etc. have been done correctly.
But this is only partly correct because even if Trial Balance agrees there may be some errors in the
accounting records.

Accuracy is assured only when there are no errors in the books of accounts. To confirm accuracy
errors are identified and rectified. Many business units have shifted from manual accounting to
computerized accounting. Yet errors in accounting are unavoidable. Hence errors are to be located
and rectified to find out the real profit or loss and financial position.

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Part 7

Part 8

Part 9

Part 10

Part 11