Correction of errors, if located after some time, is always made by a proper journal entry and not by simply crossing the wrong amount and inserting the right one. A complete explanation for the correction made should be given so that no difficulty is experienced later when accounts are checked. From the point of view of rectification, errors are of two type:—

a) Error that affect the trial balance; and

b) Errors that do not affect the trial balance.

Correction of such error that affect the trial balance would not be through journal entry, only corrective amount placed on the proper side will suffice. Some of the examples of such types of errors are as follows :—


1)   An amount of Rs 150 for a credit sale to Mr. X correctly entered in the sales book, has been debited to his account as RS 105. In this case the amount has been correctly entered in the sales book and. therefore, the sales account has been correctly posted. The mistakes lies only in the account of Mr. X . who should have been debit with Rs. 150 and has been debited . instead , with RS 105. The correcting entry is to .—


Mr. X Account                 Dr                                        Rs. 45.00

               To mistakes in posting on                                        Rs.45.00

(Being amount wrongly posted in Mr. X A/C for RS 105 instead of Rs. 150 )


2)   An amount of Rs. 150 for a credit sale to D.K. Kapoor. correctly entered in sales book. has be credited to him. in this case also the sales account has been correctly posted and the mistakes lies only in the

account of D. K. Kapoor, who has been credited instead of debited. The correcting entry is to debit him with Rs. 300, Rs. 150 to remove the wrong credit and Rs. 150 for the rightful debit. The caption will be “To mistake in Posting on”

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