Question

Record the rectification entry for the following transactions:
1. Credit sales to Rajni Rs. 5,000 recorded in Purchases book:
This is an error of $..........................................$.

2. Furniture purchased from M/s Rao Furnishigs for Rs. 8,000 was entered into
the purchases book.
This is the error of $..........................................$.

3. Cash sales to Radhika Rs. 15,000 was shown as receipt of commission in the
cash book.
This is the error of $..........................................$.

4. Cash received from Karim Rs. 6,000 posted to Nadeem.
This is the error of $..........................................$.

Answer 1

1. Credit sales to Rajni Rs. 5,000 recorded in Purchases book:

This is an error of  Principle

2. Furniture purchased from M/s Rao Furnishigs for Rs. 8,000 was entered into  the purchases book. This is the error of   Principle

3. Cash sales to Radhika Rs. 15,000 was shown as receipt of commission in the  cash book.  This is the error of Principle

4. Cash received from Karim Rs. 6,000 posted to Nadeem.  This is the error of  Principle

Error of Principle is incurred on those items where clear distinguish is not made between the capital and the revenue items

Explanation:

Rectification errors can be classified as:

1. Error of Omission
2. Error of commission
3. Error  of Principle
4. Compensating Error