Explain the errors of commission and give two examples with measures to rectify them.
Errors of Commission: If a wrong amount is entered either in the Journal or in the Subsidiary Books, the Trial Balance will tally because the same amount (though wrong) will be posted in both the accounts affected by the transaction.
For example, sale of goods to Ram on credit for ₹420 has been entered in the Journal as ₹240. When the entry is posted to Ledger, Double Entry will be completed with ₹240, Ram being debited with ₹240, and sales account being credited with ₹240. In Spite of the inaccuracy in both the accounts, the Trial Balance will tally.
Measures to Rectify Errors of Commission
Let us consider the first example.
Sales return from Megha Rs 1,600 were posted to her account as Rs 1,000. This is an error of commission.
The rectification entry for the above error will be
Suspense A/c Dr. 600
To Megha 600
(Being sales return from Megha Rs 1,600 were posted to her account as Rs 1,000 now rectified)
Let us consider the second example.
Cash received from Karim Rs 6,000 posted to Nadim. This is an error of commission.
The rectification entry for the above error will be
Nadim Dr. 6000
To Karim 6000
(Being cash received from Karim Rs 6,000, wrongly posted to Nadim’s account now rectified).
Cash paid to Neha 2,000 was not posted to her account.
This is an error of ..................................
The wrong effect has been:
The correct effect should have been:
The rectification entry will be.
Read the following transactions and identify the cause of difference on the basis of time gap or errors made by business firm/bank. Put a sign (✓) for the correct cause.
S. No. | Transactions | Time Gap | Errors made by business/ bank |
1.
3. 4. 5. |
Cheque issued to customer but not presented for payment. Cheque amounting to Rs. 5,000 issued to Interest credited by the bank but yet not recorded by Cheque deposited into the bank but not yet collected Bank charges debited to firm's current account by the |
Record the rectification entry for the following transactions:
Credit sales to Rajni 5,000 recorded in Purchases book:
This is an error of ..........................................
State the wrong entry recorded in the book of accounts
Correct effect should have been:
The rectification entry will be:
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Welcome to the NCERT Solutions for Class 11 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 2 , Question 3: Explain the errors of commission and give two examples with measures to rectify them.....
Comments