Rectification of Errors in Accounting

Hi

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 !!