Question

Which of the following account(s) will be affected, while rectifying the error of an amount Rs.200 received from Mr. "P" wrongly credited to Mr. "Q's" account?

• A. Only Cash Account
• B. Only P's account
• C. Only Q's account
• D. Both of Mr. P's & Mr. Q's Account

Answer 1

The correct option is D Both of Mr. P's & Mr. Q's Account

This kind of error is known as error of commission. In the given situation, amount received from Mr. P is wrongly credited to the account of Mr. Q. Hence a rectification entry has to be passed as:

Mr. Q's A/c Dr.

To Mr. P's A/c

(Being rectification entry passed for amount received from Mr. P).