CBSE Class 11 Accountancy Chapter 18 – Rectification of Errors
Book Back Questions with Video Solutions In this article, you will find book back sums with solved video links to help you practice and understand the concept clearly. Rectification of Errors: - Errors may or may not affect the trial balance, but they must be detected and rectified. The process of detecting errors and the procedure to correct the accounting records are called the rectification of errors. Objectives of Rectification of Errors: - The following are the four objectives of Rectification of Errors: Maintaining correct accounting records. Redrafting the trial balance with the rectified ledger balances. Preparation of the correct profit and loss account by using the rectified figures to find out the correct profit/loss, as the case may be. Preparation of a balance sheet with the rectified figures to depict the correct value of the assets and liabilities of the business. Classification of Errors: The following are four categories of errors: 1. ...