Question

Explain the errors of commission and give two examples with measures to rectify them

Answer 1

Errors of commission are the mistakes which occur due to the negligence of bookkeeper, clerks by recording a transaction with wrong amounts, wrong balancing, wrong posting and/or wrong carrying forwarded of an item of an account.

The following example will ensure the process of understanding and rectification of following errors.

1. Let us consider the first example.

Sales made to Mr. X of s. 10,000 recorded a 1,000 from invoice.

In this case, Mr. X's account has been debited with Rs.1,000 instead of Rs.10,000; So the error of commission, it should be further debited with Rs. 9000.

This will be rectified by passing the following entry:

Mr. X's A/c  Dr.	9,000
To Sales A/c		9,000
(Goods sold to Mr. X of Rs. 10,000 and Wrongly posted as Rs. 1,000, Now rectified)

2. Purchase book was undercast by Rs. 10,000.

This error can be rectified in any of the following two ways:

a. If an error is located before preparing trial balance, then Rs. 10,000 should be recorded in the debit side of Purchase Account.

b. If an error is located after preparing Trial Balance, then the following entry needed to be recorded.

Purchase A/c  Dr.	10,000
To Suspense A/c		10,000