#1 Rectification of Error | CA Foundation Accounts | ROE | SIRAJ SHAIKH🔥 скачать в хорошем качестве

#1 Rectification of Error | CA Foundation Accounts | ROE | SIRAJ SHAIKH🔥

🔹 Meaning of Rectification of Errors In accounting, sometimes mistakes (errors) are made while recording or posting transactions in the books of accounts. The process of finding and correcting these mistakes is called Rectification of Errors. 🔹 Types of Errors Errors are classified mainly into 4 types: 1️⃣ Error of Omission When a transaction is completely or partially left out from the books. Example: Purchase of goods for ₹5,000 is not recorded at all. Rectification: Pass the entry that was missed. 2️⃣ Error of Commission Mistake while recording, posting, totaling, or balancing due to wrong figures or wrong accounts. Example: Purchase of goods from Raj ₹5,000 is recorded as ₹500 or posted to Ravi’s account. Rectification: Correct the amount or account in which the mistake occurred. 3️⃣ Error of Principle When the basic accounting principle is violated. Example: Buying a computer (asset) of ₹20,000 is wrongly recorded as an expense in Purchases Account. Rectification: Reverse the wrong entry and pass the correct entry. 4️⃣ Compensating Errors When two or more errors cancel each other. Example: Sales account overcast by ₹500 and Purchases account overcast by ₹500. Rectification: Adjust entries separately even though trial balance tallies. 🔹 Stages of Rectification 1. Before Trial Balance is Prepared Directly correct the entry in the journal or ledger. 2. After Trial Balance is Prepared but Before Final Accounts Use a Suspense Account if the trial balance doesn’t tally. Correct the errors by passing journal entries. 3. After Final Accounts are Prepared Adjust the next year’s accounts with profit or loss adjustment account. 🔹 Use of Suspense Account If the trial balance does not tally due to some errors, the difference amount is temporarily put in a Suspense Account until all errors are found and corrected. 🔹 Important Points Errors affecting the Trial Balance → Suspense Account needed. Errors not affecting the Trial Balance → Correct entry passed without Suspense Account. Always identify the type of error before rectification. i just hope you all must have liked the video, so do comment your view and do like and share the channel if you all feel worth sharing the channel. Don’t forget to subscribe our channel    / sam4sir      / @sirajshaikhd.  . Must check playlist for all other videos. ❣️ Like, share or subscribe karna mat bhulna..!!! For notes and important questions join our telegram channel : Telegram : skyeducationofficial (in case of link failure just search by name https://t.me/skyeducationofficial https://t.me/sirajshaikhdegreestudy Connect with me on all other social media networks Facebook : siraj shaikh Instagram : sam4sir00 Twitter : sirajsam4sir Snapchat : sam4sir (siraj shaikh) Telegram : sam4sir00 ✨ Don’t forget to *Like 👍 | Share 🔄 | Subscribe 🔔* for more CA Foundation concepts in simple language! #CAFoundation #Inventories #Accounting #AS2 #CAFPrep