- Data Structure
- Networking
- RDBMS
- Operating System
- Java
- MS Excel
- iOS
- HTML
- CSS
- Android
- Python
- C Programming
- C++
- C#
- MongoDB
- MySQL
- Javascript
- PHP
- Physics
- Chemistry
- Biology
- Mathematics
- English
- Economics
- Psychology
- Social Studies
- Fashion Studies
- Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
How are entries rectified after preparing trial balance?
There are two types of error rectifications while preparing trial balance. These are single side error and double side error respectively, if the error is detected after preparing trial balance.
- Single side error
Errors in particular accounts are rectified by applying a suspense account.
Suspense account − To prepare final accounts, the difference in trial balance is posted in the suspense account. If an error is rectified in trial balance, then the suspense account is closed. In the balance sheet, the suspense account appears in the asset side, if it appears in the debit side of the balance sheet and vice versa.
Example − Entry in sale day book is over casted by Rs. 1,800/-
The correction is as follows −
Particulars | Debit | Credit |
---|---|---|
Sales A/c To suspense A/c | 1800 | 1800 |
- Single side error
While correcting the entries, following principles are followed −
- Recognizing the correct entry.
- Entry recorded in trial balance.
- Rectification of entry.
Example − A wrong entry is passed for Rs.7,50,000, for a building purchase Rs.7,50,000
Rectification −
Particulars | Debit | Credit |
---|---|---|
Building A/c To cash A/c | 750000 | 750000 |
Purchase A/c To cash A/c | 750000 | 750000 |
Building A/c To cash A/c | 750000 | 750000 |