The procedure of checking the records of financial statement for errors and clearing them is rectification. The errors can be formed while carrying balance forward or posting the entries into the ledger account. Mainly there are two types: Rectification that do not influence the trail balance and Rectification that influence trial balance. The former type is the one which include error on both sides of the debit and credit and hence known as two sided errors. The latter type is error involved in any one side of the trial balance. The process of rectification starts with identification of the account, determine whether there is shortage or excess and increase or decrease the debit or credit accordingly. This process is carried out so that it would be helpful for increasing the reputation of a firm and the financial statements can be displayed correctly. The discussions about this topic can be seen in the PowerPoint presentation.

Aparika Sharma

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