Which of the following is two-sided error?

The correct answer is option 4- All of these.

Errors which do not affect the Trial Balance are committed in two or more accounts. Such errors are also known as two-sided errors. They can be rectified by recording a journal entry giving the correct debit and credit to the concerned accounts. Examples of such errors are – complete omission to record an entry in the books of original entry; wrong recording of transactions in the book of accounts; complete omission of posting to the wrong account on the correct side, and errors of principle. The rectification process essentially involves:

• Cancelling the effect of wrong debit or credit by reversing it.

• Restoring the effect of correct debit or credit.

For this purpose, we need to analyse the error in terms of its effect on the accounts involved which may be: (i) Short debit or credit in an account; and/or (ii) Excess debit or credit in an account.

Therefore, rectification entry can be done by: (i) debiting the account with short debit or with excess credit, and (ii) crediting the account with excess debit or with short credit.