RECTIFICATION OF ERRORS
The very purpose of maintaining accounting records is to know the profit
made or the loss incurred by a business entity and its financial position at
the end of every accounting year. Accuracy is assured only when there are no
errors in the books of accounts. To ensure accuracy, errors are identified and
rectified. Many business enterprises have shifted from manual accounting to
computerised accounting. Yet, errors in accounting are unavoidable. Hence, errors
are to be located and rectified to find out the real profit or loss and
financial position i.e., assets and liabilities at different periods, usually
at the end of each financial year.
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