If an error occurred in the books of accounts, and you identified quickly, you can fix it timely and replace it with correct entry. But if the error recognized after some time then you need to pass journal entry, those entries you pass to fix the errors called rectification entry. In another word the process of systematically correcting the errors is called rectification
Rectify General Entry
If you post general entry into the ledger, so you require rectification entry. The errors must be rectified before finalization of books of accounts. You can not have correct trial balance with such errors,as it affects one side of one account hence, it can not correct by journal entry, but if correction is required you need to enter the amount on both sides of the account debit and credit.
Rectify Two-sided Errors
Those errors who are affected both debit and credit side, you can correct them by journal entry. You will record one account as debit and other is credit.
Here are some good example of rectification entries.
A mistake made for the purchase of furniture $20000. You can rectify it by passing double entry included debit and credit aspects of the transaction. The entry shall be passed as
| Description | Debit | Credit |
| Furniture A/c | 20,000 | |
|
To Cash A/c |
20,000 |
As you passed rectification entry you can enter furniture account into furniture ledger account and cash can be entered in the cash book and cash account.
How Rectify Purchase Errors
Purchase of ERP from ERP Gold total to $25000, mistakenly entered in the ledger account of Research & Solution. To rectify this error you need to reverse Research & Solution account and you must credit ERP Gold account with the same amount.
| Description | Debit | Credit |
| Purchase A/c | 25,000 | |
| ERP Gold A/c | 25000 |
Rules of Error for Rectification Entry
Sale of Land for 500000 posted in Sales Account.
The land is a fixed asset so it must be posted in a land account. For that reason, you will have to rectify sales account by debiting it and crediting the same to land account.
Correct Entry
| Description | Debit | Credit |
| Bank A/c | 50,0000 | |
| To Land A/c | 50,0000 |
Wrong Entry
| Description | Debit | Credit |
| Bank A/c | 50,0000 | |
| To Sales A/c | 50,0000 |
Rectification Entry
| Description | Debit | Credit |
| Sales A/c | 50,0000 | |
| To Land A/c | 50,0000 |
