Rectification of Errors FAQs What is meant by the term "rectification of errors"? The process of finding and correcting mistakes of this kind is called Rectification of Errors. Rectification of Errors can be addressed by answering the questions of what, why, and how. What situations do the errors in accounting typically occurs? In accounting, errors are the mistakes that the bookkeeper or accountant makes. These mistakes may occur in any of the following situations, among others:- classifying accounts- writing subsidiary books- posting entries to ledger accounts- casting totals- balancing accounts- carrying balances forward. What are the classification of errors? Errors can be classified broadly into two types: 1. Intentional errors: these are generally strategic in nature. Such errors are committed at the management level and not at the clerical level.2. Unintentional errors: this type of error is a category of mistakes that need to be rectified to maintain accounts correctly. Why is there a need for the rectification of errors? Errors should be rectified; otherwise, a business enterprise will not be transparent. It will fail to be creditworthy and not show the correct profit or loss. In other words, it will not show the true picture. How are errors rectified? To ensure confidence in the entries made in the books of account, corrections are not undertaken by striking off figures, erasing figures, or rewriting them. Even overwriting is not allowed. Instead, corrections are applied by following a standard methodology. The permitted methodology involves correcting any errors through rectifying entries. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.