Accounting Errors are those mistakes which are done by accountant due to ignorance or any other reason. These errors may be principle mistakes, clerical errors, errors or commission, errors of omission and errors of compensating. Some of errors effect on side which can be easily revealed by making trial balance but some errors can no be disclosed by making trial balance.
Accounting errors affect company's profit and loss account and balance sheet. After accounting errors in books of company, company can not show correct and true net profit or net loss and financial position in his financial statements. So, it is very necessary to correct these accounting errors by adopting the procedure of rectification of errors. Rectification of errors is simple technique to correct all types of accounting errors for showing correct profit and financial position in financial statements.
Accounting errors affect company's profit and loss account and balance sheet. After accounting errors in books of company, company can not show correct and true net profit or net loss and financial position in his financial statements. So, it is very necessary to correct these accounting errors by adopting the procedure of rectification of errors. Rectification of errors is simple technique to correct all types of accounting errors for showing correct profit and financial position in financial statements.
