Account 1 Marks Question

Machinery purchased for ₹ 5,000 has been debited to Purchases A/c.

When an error is rectified by passing a Journal entry, one account being debited and the other account being credited, it is called a rectifying entry.

When a Trial Balance does not tally, the difference is put to a newly opened account named 'Suspense Account and the Trial Balance is thus made to tally. In case, the debit side of the Trial Balance exceeds the credit side, the difference is put on the credit side of Suspense Account'. Likewise, if the credit side of the Trial Balance exceeds the debit side, the difference is put on the debit side of ‘Suspense Account’.

A sum of ₹ 2,500 given to Ajay is correctly recorded in the Cash Book but omitted to be posted to the Debit of Ajay. The error will be termed as one sided error because the error exists in the account of Ajay only.