Explain
the errors of commission and give two examples with measures to
rectify them.
Explain the errors of commission and give two examples with measures to rectify them.
Errors of commission refer to those errors that are committed when transactions are recorded with wrong amounts, wrong balancing is done, wrong posting and/or wrong carrying forwarded is done. The following examples will illustrate the process of understanding and rectification of such errors.
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Let us consider the first example. Sales made to Mr. X of Rs10,000 recorded as 1,000 from invoice.
In this case, Mr. X’s account has been debited with Rs 1,000 instead of Rs 10,000; hence, the error of commission is committed. This requires a further debit of Rs 9,000, in order to rectify this error of commission. This will be rectified by passing the following entry:
Mr X's A/c
Dr.
9,000
To Sales A/c
9,000
(Goods sold to Mr X of Rs 10,000 was wrongly posted as Rs 1,000,now rectified)
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Purchase book was undercast by Rs 10,000.
This error can be rectified in any of the following two stages:
a. If an error is located before preparing trial balance, then Rs 10,000 should be recorded in the debit side of Purchases Account.
b. If an error is located after preparing Trial Balance, then the following entry need to be recorded.
Purchase A/c
Dr.
10,000
To Suspense A/c
10,000
Errors of commission refer to those errors that are committed when transactions are recorded with wrong amounts, wrong balancing is done, wrong posting and/or wrong carrying forwarded is done. The following examples will illustrate the process of understanding and rectification of such errors.
-
Let us consider the first example. Sales made to Mr. X of Rs10,000 recorded as 1,000 from invoice.
In this case, Mr. X’s account has been debited with Rs 1,000 instead of Rs 10,000; hence, the error of commission is committed. This requires a further debit of Rs 9,000, in order to rectify this error of commission. This will be rectified by passing the following entry:
|
Mr X's A/c |
Dr. |
9,000 |
||
|
To Sales A/c |
9,000 |
|||
|
(Goods sold to Mr X of Rs 10,000 was wrongly posted as Rs 1,000,now rectified) |
||||
-
Purchase book was undercast by Rs 10,000.
This error can be rectified in any of the following two stages:
a. If an error is located before preparing trial balance, then Rs 10,000 should be recorded in the debit side of Purchases Account.
b. If an error is located after preparing Trial Balance, then the following entry need to be recorded.
|
Purchase A/c |
Dr. |
10,000 |
||
|
To Suspense A/c |
10,000 |
|||
