period. You will learn about this aspect at an advanced stage of your studies in accounting. Box Guiding Principles of Rectification of Errors . If error is committed in books of original entry then assume all postings are done accordingly.
. If error is at the posting stage then assume that recording in the subsidiary books has been correctly done. . If error is in posting to a wrong account (without mentioning side and amount of posting) then assume that posting has been done on the right side and with the right amount.
. If posting is done to a correct account but with wrong amount (without mentioning side of posting) then assume that posting has been done on the correct side. . If error is posting to a wrong account on the wrong side (without mentioning amount of posting) then assume that posting has been done with the amount as per the original recording of the transaction.
. If error is of posting to a wrong account with wrong amount (without mentioning the side of posting) then assume that posting has been done on the right side. . If posting is done to a correct account on the wrong side (without mentioning amount of posting) then assume that posting has been done with correct amount as per original recording.
. Any error in posting of individual transactions in subsidiaries books relates to individual account only, the sales account, purchase account, sales return account or purchases return account are not involved. . If a transaction is recorded in cash book, then the error in posting relates to the other affected account, not to cash account/bank account .
If a transaction is recorded through journal proper, then the phrase ‘transaction was not posted’ indicates error in both the accounts involved, unless stated otherwise. . Error in casting of subsidiary books will affect only that account where total of the particular book is posted leaving the individual personal accounts unaffected. Test Your Understanding - III Show the effect through Journal entries : .
Credit sales to Mohan Rs. , were