How to Rectify the Errors Affecting the Self Balancing Ledgers

In the Self-balancing system, we must justify the nature of the error whether it affected the total of the subsidiary book or it is related to the transfer of the amount from one Ledger to another or it is committed to posting from journal to ledger accounts.

how to rectify the errors affecting the self balancing ledgers
how to rectify the errors affecting the self-balancing ledgers

How to Rectify the Errors Affecting the Self-Balancing Ledgers

Error in affecting the total of the Sales journal, Purchase journal, Return inward journal, Return outward journal, bill payable journal, bill receivable journal, and cash Column received from Trade Debtor’s overpayments to trade creditors are covered in this category.

Two journal entries are needed for the rectification of such errors one for the usual rectification entry and another for the self-balancing entry.

The later entry is made to rectify the affected adjustment account.

If the error does not affect the total of any journals, only usual correcting anti is needed.

Thus, for rectifying the error related to the transfer of an account from one ledger to another, one transfer entry and adjustment, entries are needed.

Leave a Reply

Your email address will not be published. Required fields are marked *