What is the Difference between Rectification of Errors and
Adjustment Entry ?
- 1 Answers
- 12398 Views
- I also Faced
- E-Mail Answers
Answer Posted / waleed butt
Rectification of errors:-
Every businessman is interested in finding out
the true profit and correct financial position of his
business at the close of the trading period. The effort of
the accountant is to prepare the final accounts in such a
fashion which exhibits true picture of the business.
Accounts are considered to be authentic proof of true
financial position of a concern. But in spite of best
efforts there are certain transactions which are omitted to
be recorded or entered wrongly in the books. Such errors
affect the final accounts. An accountant should, therefore,
try to locate such errors and rectify them before the
preparation of final accounts.
Adjustment entry:-
A book-keeping entry made at the end of an
accounting period to assign income and expenses to a
different period. These entries are made under the accrual
accounting systems in order to correctly reflect the timings
of income and expenditure. Some adjusting entries include
accounts receivable, accounts payable, depreciation and
amortization.
| Is This Answer Correct ? | 9 Yes | 3 No |
Post New Answer View All Answers
what is payment method?How many payment method we can assign to company code.
what is the scenario of multi-org setup?
Under the accrual basis of accounting incomes are recognised at the time -------------------
Hi, If I am placing the order in amazon on behalf of the customer who place the order in other e-commerce application in which If I mention the billing address of the customer and goods will be delivered to the customer from amazon ,and other E-commerce site will deduct their commission on the certain % and make the payment to me on some what profit at that time how should maintain my books of account..??
what are the type of cash flows?
A company produces and sells 12500 units of Commodity X at Rs 50 each. The variable cost of the production is 20 % of selling price. Fixed cost being Rs 100000 per annum. Calculate the PV ratio and BEP if. The selling price is reduced by 5 %. Fixed cost is increased by 2 lacs
EXPAND_________SCM
describe how accuracy in trial balance is a prime objective for preparing the financial statements?
What was key roles of Cashflow statement and Fund flow statement and Balnsheet..?
Ram retired from partnership. The partners with mutual consent agreed to put the capital balance as on the date of retirement as loan to the firm @ 18% pa. The credit balance to his capital account was Rs 325000/- Pass necessary entry
What is DECR And for wt it is used?
Rs. 23.50 ( Rupes twenty three & paise fifty only) what is euro Conversion?
how we could adj. the entries of prop. & firm in merging time
explain sales/purchase accounting?
How do you manage the sales account in tally
