How to Rectify the Errors Affecting Sectional Balancing System

In the sectional balancing system, normal rectification entries are made with a slight deviation because of this method. Only two memorandum accounts (total debtors account and total debtors account) are opened in the general ledger which is not a part of the double-entry system.

 how to rectify the errors affecting the sectional balancing system
how to rectify the errors affecting the sectional balancing system

Rectification of Ledger Errors Under Sectional Balancing System

David’s maintenance control account is in the general ledger.

The net total of the balances extracted from the sales ledger as of 30th June 2010 amounted to $6,438 which did not agree with the balance of the sales ledger control account.

On checking, the following errors were discovered After the Adjustment of which the books balanced and the correct net total of the sales ledger balances agreed with the Amended balances of the control account:

  1. Sales return book had been overcast by $100.
  2. A balance Owing to M off 239 has been written off as bad on 30 June 2010 and debt to bad debts account but no entry was made in the control account.
  3. A Debit balance of $735 and a credit balance amounting to $23 has been omitted from the list of balances.
  4. No entries had been made in the control account in respect of a transfer of $80 standing to the credit of A’s account in the purchase ledger to his account in the sales ledger.
  5. A check of $127 received from C had been dishonored but the entry to record this fact in the cash book has not been posted to C’s account although dealt with within the control account.
  6. A discount of $15 allowed to us has been correctly recorded and posted this was subsequently disallowed and the corresponding amount was entered in the discount received column in the cash book and posted to S’s account in the purchase ledger and included in the total of the discount received.

Give journal entries without narration and if no general entry is required, state how these errors will be corrected also set the total debtor’s account showing the balance before and after the Correction/Rectification of errors under the sectional balancing system.

Journal

rectify the errors affecting the sectional balancing system
rectify the errors affecting the sectional balancing system

Total Debtors Account

rectify the errors affecting the sectional balancing system
rectify the errors affecting the sectional balancing system

Reconciliation Statement

rectify the errors affecting the sectional balancing system
rectify the errors affecting the sectional balancing system

Thus, now you know how to Rectification of errors under a sectional balancing system.

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