corrections to errors

Question 1

Errors of omission

Answer 1

If a transaction is completely missed out, then the trial balance will still balance but it will balance at the wrong amount.

Question 2

Errors of commission

Answer 2

If a debit entry has been correctly posted to the correct side but to the wrong account then the trial balance will still agree but will be incorrect.

Question 3

Compensating errors

Answer 3

If one account has been overadded by £20 and another account has been underadded by £20, then one mistake compensates for another and the trial balance totals match but 2 accounts are incorrect.

Question 4

Errors of principle

Answer 4

When an item is entered in the wrong class of account e.g. if the purchase of an asset is debited to motor expenses instead of motor vehicles.

Question 5

Errors of original entry

Answer 5

If the original entry is incorrectly entered e.g. £24 instead of £42.

Question 6

Complete reversal

Answer 6

All entries for a transaction have been put in the wrong column.