rectification entries

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Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2009 bacically what is the purpose behind passing rectification entries basically how to proceed alltogether?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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18 December 2009 The concept behind the rectification entries is that we should not carry on mistakes. The moment we know these; we should rectify.

First Step : Know the Correct Entry
Second Step : Know the wrong entry passed.
Third Step : Pass such journal entry so that only correct one remains.

For example Ram was Debited by Rs.2000 whereas he should have been Credited.

Correct Entry : Ram A/c Credit Rs.2000
Wrong Entry : Ram A/c Debit Rs.2000

To remove the effect of wrong; you have to Credit Ram's A/c by Rs.4000

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