Correcting Entries

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An accountant can also commit errors while recording Accounting Transactions in books of accounts, in their recording, posting or balancing the accounts and so on. These errors should be located and Correcting Entries pass as soon as possible, so that accounts give true and fair results of the operations of the business enterprise.

There are certain errors which will disturb the Trial Balance in the sense that the trial balance will not agree. These errors are easy to detect and their Rectification of Errors are also simple. However, there are certain errors which are not detected through a trial balance. In other words, a trial balance would agree in spite of these errors.  These errors are very difficult to detect.

Correcting Entries Examples


Example # 1: 

Rectify the following journal entries Aroosa & Brothers Co.
correcting journal entries


Example # 2: 

Pass correcting entries for the following transactions at end April, 2016:

  1. A builder’s bill for Rs. 4,600 for the erection of a small shed was debited to Repairs Expense Account.
  2. Repairs to plant amounting to Rs. 900 had been charged to Plant and Machinery Account.
  3. Purchase Day Book undercast by Rs. 1,000.
  4. Check for Rs. 750 received from Hussain Ltd. Was credit to account of Hassan Ltd.
  5. The total of Return Inward Book has been overcast Rs. 2,000.
  6. Goods to the value of Rs. 4,000 returned by X were included in closing stock, but no entry was made in the books.
  7. Received Rs.2,000 from Shankar debited to his account.
  8. The sales book undercast by Rs.1,500.


when preparing correcting entries


>>> Practice Adjusting Entries Quiz 1 and Quiz 2.

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Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.