Rectification of error :
Every concern is interested in ascertaining its true profile and financial position at the close of the trading year. But in spite of best efforts of an accountant, certain transaction do get entered wrongly in the books of accounts.such errors may be committed while recording the transaction in the journal or subsidiary books, posting them to ledger or in preparing the trial balance it self . it is necessary to locate these errors and rectify them. Otherwise profile and loss account not give the correct profit or loss figure and the balance sheet will not present a true and fair view of the financial position of the business.
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