DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : P. Sankara Rao
Designation : Lecturer
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic, Srikakulam
Year/Semester : I year
Subject : Accountancy I
Subject Code : CCP 102
Topic : Rectification of Errors
Duration : 50 mts.
Sub Topic : Errors Not Disclosed by Trial balance
Teaching Aids : PPT & Animation
CCP102.105 1
Objective

On completion of the period, you would be able to:

 Identify the errors not disclosed by trial balance

 Write the rectification entries

CCP102.105 2
Recap

 In the earlier classes we learnt various types of

errors not disclosed by Trial balance such as
error of principle, compensating errors etc.

CCP102.105 3
Solutions to previous problems

1. Bills receivable book and Bills payable book are

overcast by 2000/-
 To rectify this

Bills payable A/c Dr 2000

To bill receivable A/c 2000

CCP102.105 4
1. Returns Inward (sales returns) and Returns
outward (purchase returns) under cast by
Rs.116/-

Sales returns A/c Dr 116

To purchase returns 116

2. Sales book and purchase book are over cast by

Rs.500/-

Sales Account Dr 500

To purchase A/c 500

CCP102.105 5
Assignment 1

Rectify the following errors:

 Interest received Rs.300 credited to discount

account
 An amount of Rs.800 paid to Uma was wrongly
debited to Rama A/c.
 Furniture purchased from Atma Ram for Rs.1000
has been recorded as Rs.100

CCP102.105 6
Assignment 2
Rectify the following errors

 Rs. 800 purchase of furniture debited to trade

expenses.
 An amount of Rs. 200 drawn by the proprietor for
personal use has been debited to sales a/c
 Installation expenses Rs. 450 in respect of a plant were
debited to wages a/c
 An amount of Rs. 5000 made to building was debited
to repairs a/c

CCP102.105 7
Assignment 3

Rectify the following errors and also show the effect on Trial Balance

 Purchase of machinery Rs. 4000 debited to purchase a/c

 Sale of old equipment Rs. 200 credited to sales a/c
 Salaries paid Rs. 500 not recorded
 Sold goods to Mahesh Rs. 700 but posted as Rs. 7000

CCP102.105 8
 Quiz

1. Error occurred due to violation of accounting

principle
a) Compensating error
b) Error of principle
c) Error of omission
d) None of the above

CCP102.105 9
1. “Transaction not entered in the books of
accounts” this error is:
a) error of principle
b) compensating error
c) error of omission
d) None of the above

CCP102.105 10
1. Errors not disclosed by trial balance are also
known as:
a) One side error
b) Three side error
c) Two side error
d) None of the above

CCP102.105 11
Frequently asked Questions

1. What is meant by rectification of errors?

2. What are the advantages of rectification of errors?
3. Mention the errors that are not disclosed by Trial
balance.

CCP102.105 12