does error of carry forward will effect the impersonal accounts
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Errors in nominal account affect the profitability of the business hence all such errors ideally to be located and rectified within the same financial year. If errors are not located and carried forward to the subsequent year, these need to be rectified through profit & loss adjustment account.
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1
Answer:
Errors in nominal account affect the profitability of the business hence all such errors ideally to be located and rectified within the same financial year. If errors are not located and carried forward to the subsequent year, these need to be rectified through profit & loss adjustment account.
Errors of personal account and real account need to be rectified in the subsequent year through suspense account.
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