Errors and the Trial Balance Flashcards
The main types of errors not causing an imbalance on the trial balance
- Error of original entry
- Error of reversal entries
- Error of omission
- Error of principle
- Error of commission
- Compensating errors
Errors leading to an imbalance on the trial balance
- Single entry transaction
- Unequal amounts error
- Two debits / two credits error
- Transposition error
- Calculation error
- Balance omissions
- Balance transfer error
Error of original entry
Does not show an imbalance on the trial balance
inputting the wrong number on both sides
e.g. both entries in the general ledger showing £1,000 not £10,000
Error of reversal entries
Does not show an imbalance on the trial balance
The amounts are correct but got the debits and credits the wrong way around
Error of omission
Does not show an imbalance on the trial balance
Not recording a transaction
Error of principle
Does not show an imbalance on the trial balance
Posting to the wrong account
e.g. treating an asset as an expense
Error of commission
Does not show an imbalance on the trial balance
E.g. putting the telephone expense into the electricity expense / posting to the wrong customer
Compensating error
Does not show an imbalance on the trial balance
two errors are made but happen to cancel each other out
Single entry transaction
Leads to an imbalance on the trial balance
Only posting one entry
e.g. just posting the debit side
Unequal amounts error
Leads to an imbalance on the trial balance
Posting one amount incorrectly
e.g. £100 dr £110 cr
Two debits / two credits error
Leads to an imbalance on the trial balance
both entries posted as either a debit or credit, not one of each
Transposition error
Leads to an imbalance on the trial balance
Mistake with inputting numbers
e.g. £381 as £31
Difference will always be a multiple of 9
Calculation error
Leads to an imbalance on the trial balance
A General ledger has been added up incorrectly
Balance omission
Leads to an imbalance on the trial balance
A balance on the general ledger has been omitted from the trial balance
Balance transfer error
Leads to an imbalance on the trial balance
Balance is transferred incorrectly from the general ledger to the trial balance
e.g £100 in general ledger, £1000 on trial balance
