How Accountings Of Resources Provide A Better InterfaceFinance Services
There are numbers of organizations which are dealing with money in so often that they are unable to keep track of it easily. For this they require accounting assistance which can help in recording every update of incoming and outgoing of money as well as other assets. Accounting of money makes account for the business which in turn provides strong support to the economy in terms of growth and development.
This type of analysis of profit and loss of business is very effective for the point of view of the overall economy of the country. This in the end results in effective methods at Virtual Accounting and alternative for the better future of business in upcoming time. When the accounting of any asset or account of any business is done then it should be checked very carefully as a minor mistake on either side lead to disaster to the business as well as to the economy of the country.
How to rectify errors?
Accounting whether done manually or electronically may have some error and mistakes. Error free financial statements require periodical evaluation, proper rectification and proper care. There are various methods of rectification depending on the stage at which errors are rectified. If an error is located in the books of original entry before its posting to the ledger, it may be correct by neatly crossing out the wrong figure by a simple line and writing the corrected figure above the crossed figure. Similarly, if wrong figures have been posted to the correct ledger online accounting services; it may also be corrected in the same manner. Errors in this stage may lead to the formation of big blunders which are very difficult in getting solution.
From the rectification point of view, all errors can be classified into the following two categories:
• Errors which do not affect the trial balance or two-sided error.
• Error which affect the trail balance or one-sided errors.
What are two-sided errors?
Errors which affect two accounts at same time are known as two-sided errors. Such errors may include the following types of errors:
I. Omission to pass an entry in the books of original entry
II. Wrong recording of a transaction in the books of original records
III. Posting to the wrong account
IV. Errors of principle
All these errors can be rectified by passing a journal entry, one account being debited, and the other account being credited. Following rules should be followed for passing these rectification entries:
i. The account showing an excess debit should credited in the rectification entry
ii. The account showing a short debit should debited in entry
iii. Excess credit showing account should debited
iv. Short credit showing account should be credited