Rectification of Errors in Accounting

Name: Rectification of Errors in Accounting
Rating: 4.7 (80 reviews)

Enables to understand Types of Errors and Rectification

Created byAkshata M

Last updated 5/2021

English

English [Auto],

What you'll learn

Process of Accounting
Rectification of Errors in Accounting - Types of Errors and Treatment for Rectification of Errors
Example for rectification of errors before preparing Trial Balance
Example for rectification of errors after preparing Trial Balance (2 Approaches)
Example for Prior period adjustments

Course content

1 section • 5 lectures • 2h 18m total length

Process of Accounting2:38
Identify financial transactions and debit and credit rules. Pass and post journal entries, then close ledgers and prepare the trial balance for profit, loss, balance sheet, and notes to accounts.
Rectification of Errors – Basics44:56
Identify and rectify errors across stages from journal to trial balance, classify errors as errors of principle, omission, commission, and compensating types, and apply rectification entries with suspense accounts.
Example for rectification of errors before preparing Trial Balance30:06
Demonstrates rectification of errors before preparing the trial balance, using journal entries to correct ledgers and addressing error types such as principle, omission, and commission.
Example for rectification of errors after preparing Trial Balance (2 Approaches)36:52
Analyze rectification of errors after a trial balance using two approaches with or without a suspense account, correcting one-sided and complete entries for misposted sales, purchases, and balances.
Example for Prior period adjustments23:33
Explore how to rectify prior period errors using prior period adjustment accounts and suspense accounts, detailing entries for income and expense corrections and impact on current year profit and capital.

Requirements

Basic Accounting Journal Entries and Ledger accounts

Description

This course enables to understand various types of errors in accounting, stages at which error is detected and rectification of errors.

This course includes pre-recorded video lectures explaining concepts and solved illustrations.

The Course contains one section and 5 lectures. It includes following concepts:

Explains process of accounting flow of financial transaction (Business transaction) from Journal Entry to Ledger account, Ledger account to Trial balance.

Explanation of Types of Errors - This includes Errors of Principle, Error of Omission- Complete Omission and Partial Omission, Error of Commission – Totaling Errors, Casting Error, Posting Error, Compensating Errors along with examples.

Explanation of stage at which error is detected. Errors may be detected before preparing a Trial balance OR After Preparing Trial balance but before preparing profit and loss account and balance sheet OR After Preparing Final accounts i.e Profit and Loss account and Balance sheet in Next accounting period.

Explanation of Accounting treatment depending on type of error and stage at which error is detected.

Solved Example on Rectification of Errors before preparing trial balance and accounting treatment for the same.

Solved Example on rectification of errors after preparing trial balance but before preparing profit and loss account and balance sheet and accounting treatment for the same

Solved example for prior period Item i.e., rectification of error after final accounts – Profit and Loss and balance sheet is prepared and closed.

Happy Learning

Vanijyavidya !!

Who this course is for:

Beginner who wants to learn about rectification of Errors