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‘To err is human”. This old statement is also true for accounting also. We, as a human being are likely to commit mistakes of omission, commission and principles in maintaining books of accounts. We may omit the entire transaction from being recorded wholly or partially. We may commit mistakes in calculation, i.e., addition, subtraction, division and multiplication. Mistakes may also be committed in carrying forward total from one page to other page, posting from subsidiary books to ledger accounts. Sometimes capital expenditure may be recorded as revenue expenditure or revenue expenditure may be recorded as capital expenditure. These mistakes are likely to be committed in the books of accounts.

Mistakes committed in the books of accounts must be rectified at the earliest. It should be noted that errors in accounts are not rectified by removing mistakes by ink remover or rubbing it off or by over-writing or cutting or even by tearing off the page. Once errors are committed, we boldly accept it and rectify the mistake by passing a rectifying entry. The rectified entry will neutralize the effect of wrong entry and also bring the correct effect of the transaction. Rectification of errors should be made at the earliest. While passing rectifying entry we will have to take into consideration the nature and type of errors.