wages account. (c) An amount of ` for a credit sale of goods to Nila, although correctly entered in the sales book, has been posted as ` . Accountancy Solution (a) Depreciation account should be debited with ` , . (b) Wages account should be credited with ` , .
(c) Nila account should be debited with ` . (b) Rectification of two-sided errors before preparing the trial balance When a two-sided error is detected before preparing the trial balance, it must be rectified by passing a rectifying journal entry in the journal proper after analysing the error. Practical steps to be followed in rectifying two-sided errors Step Write the wrong entry (the entry which has already been passed in the books) Wrongly done Step Write the correct entry (the entry that should have been passed in the books) Not done Step Make the rectifying entry [the net effect by cancelling the wrong account (debit or credit) in the wrong entry by reversing it and recording the correct account in its place (debit or credit)] To be done Illustration The following errors were located before the preparation of the trial balance. Rectify them.
(a) Goods sold to Anand for ` , on credit was not entered in the sales book. (b) An amount of ` paid for repairs to the machinery stands wrongly posted to machinery account. (c) Salaries ` , paid to Gandhiraj was wrongly debited to his personal account in the ledger. Solution Rectifying entries L.F.
Dr. ` Cr. ` a Anand A/c Dr. To Sales A/c (Sale of goods to Anand not entered in sales book, now rectified) , , b Repairs A/c Dr.
To Machinery A/c (Repairs wrongly debited to machinery account, now rectified) c Salaries A/c Dr. To Gandhiraj A/c (Salaries paid to Gandhiraj wrongly debited to his account, now rectified) , , Accountancy Note: Method of deriving the rectifying entries Wrong Entry Correct Entry Rectifying Entry a Nil (Complete Omission) Anand A/c Dr. , To Sales