preparing the trial balance Errors can be rectified at the time of preparing the trial balance as follows: (a) Rectification of one-sided errors while preparing the trial balance While preparing the trial balance, if the total of debit balances and credit balances are not the same, there is disagreement of trial balance. It shows that there are errors in the books of accounts. As a consequence, the accountant may start locating errors before closing the trial balance. In such cases, the errors are rectified at that stage itself.
At this stage, the rectification of one-sided errors is made in the same manner as in the case of rectification before preparing trial balance. Rectifying journal entries are not required to be passed in the books. In such cases, errors can be rectified by giving an explanatory note in the account affected. Illustration The following errors were located at the time of preparation of the trial balance.
Rectify them. (a) Sale of goods to Akila on credit for ` , posted to her account as ` , . (b) Bought goods from Narendran on credit for ` , , credited to his account as ` , . (c) Purchase of furniture from Ravivarman for ` on credit were debited to furniture account as ` .
(d) Purchased machinery for cash ` , was not posted to machinery account. (e) The total of purchases book ` was carried forward as ` . Solution (a) Akila account should be debited with ` (b) Narendran account should be credited with ` (c) Furniture account should be credited with ` (d) Machinery account should be debited with ` , (e) Purchases account should be credited with ` Accountancy (b) Rectification of two-sided errors while preparing the trial balance Rectification of two-sided errors at the time of preparing the trial balance is just similar to that of their rectification before preparation of trial balance. Illustration The following errors were located at the time of preparation of the trial balance.
Pass rectifying entries. (a) Goods of the