(4) To do correct work by undoing wrong work. Stage of Rectification of Errors 979 Before preparing After preparing Trial Balance Trial Balance but After preparing before final Account final Account Rectification of Errors in Accounting depends upon the fact that under which situation rectification is required to do? Rectification under I and II situations will be studied in details in this chapter. Rectification of Errors before preparing Trial Balance: In this situation all the accounts in Ledger remain opened. In other words the ledger accounts are not balanced. In this situation rectification entry is not passed but necessary rectification is done as under in the related account - (1) First of all those accounts will be prepared in which error is committed and which is to be rectified. (2) In erroneous account, amount is not written, short amount is written, or entry is made on wrong side, rectification entry will be made on that side on which entry was to be made. (3) If excess amount is written in erroneous account, difference of amount is written on opposite side to rectify the error. (4) When a side of error is changed then the account is affected by double amount. For example amount received from Poonam 600 was wrongly debited in his account as 660. This wrong posting of wrong amount will have the effect of 600+ 660-31,260. (5) On rectifying the wrong entry, the reason for rectification is written. Example 9 : Following errors were detected from the books of Laxman Brothers before preparing Trial Balance rectify them by appropriate method. 1. Purchase book was undercast by 25,000 2. Sales Return Book was overcast by 1,200. 3. Rent paid 2,000 was posted in Rent account as 82,200. 4. Received 1,500 from Kalpesh was not posted in the account of Kalpesh. 5. Total of Purchase Return Book of 8,000 was carried forward on the next page as 8,800. 6. Received 300 as commission was credited to Interest Account