Question

Accounting entries passed in journal proper for correction of mistakes committed in the books of accounts ____________.

• A. Transfer entries
• B. Rectification entries
• C. Contra entry
• D. Adjustment entry

Answer 1

The correct option is B Rectification entries

Rectification of errors are done by passing the journal entries in the journal. These entries are called rectification entries.

For example, purchase of machinery of Rs.5000 debited to purchase account.

Original entry:

Purchase A/c Dr. 5000

To Supplier A/c 5000

(Being machinery purchased)

Rectification entry:

Machinery A/c Dr. 5000

To Purchases A/c 5000

(Being rectification entry passed against the original entry date)