Rectification Entries
Sometimes, errors may ocur 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.
For example, let us imagine that the firm has paid Rs. 9,500/- as salaries. Instead of noting down the amount as Rs. 9,500/-, let us presume the accountant wrote Rs. 5,900/-. This is an error. In order to rectify this error, we should keep the previous entry as it is, and pass another entry which will balance the difference.
The rectification entry will be as follows:
Salaries a/c 3,600
To Cash a/c 3,600
(being the error in noting down the salaries amount, now rectified)
This entry must now be posted in the ledger.
- Lasya Ramakrishna
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