Depreciation written off on furniture ₹ 1,500 was not posted to depreciation account. This is an error of ... The wrong effect has been: The correct effect should have been: The rectification entry:
(correct_effect) Depreciation account should have been debited by ₹1,500 and Furniture account should have been credited by ₹1,500.
(error_type) partial omission
(rectification_entry) Depreciation A/c Dr. 1,500 To Suspense A/c 1,500 (Being depreciation on furniture not posted to Depreciation account, now corrected)
(wrong_effect) Depreciation account has not been debited, so it is understated by ₹1,500. Furniture account is correctly credited. The trial balance shows an excess credit of ₹1,500.
Explanation
The error is a partial omission because the posting to Depreciation account was omitted while the credit to Furniture account was correctly made. This matches Illustration 3(iii) of the textbook where a similar error for machinery was rectified by debiting Depreciation and crediting Suspense.
Solution Steps
Step 1: Identify the error – Depreciation on furniture was not posted to Depreciation account, which is a partial omission.
Step 2: Analyze the wrong effect – Depreciation account is not debited (understated), Furniture account is correctly credited, causing an excess credit of ₹1,500 in the trial balance.
Step 3: Determine the correct effect – The original entry should have been: Depreciation A/c Dr. ₹1,500 to Furniture A/c ₹1,500.
Step 4: Pass the rectification entry – Since the credit to Furniture is already present, debit Depreciation A/c and credit Suspense A/c with ₹1,500 to complete the missing posting.