Errors detected by the Trial balance Flashcards
Name three or more errors detected by a Trial balance.
Single entry, casting (addition) error, transposition error, extraction error, omission, two entries on one side.
What is a single entry error?
Only one side of the entry is being made.
What is a casting error?
If a ledger account has not been balanced due to a casting error then that means it hasn’t been added correctly.
What is a transposition error?
The numbers have been moved around
e.g. £5,931 is meant to be £5,391
What is an extraction error?
When a ledger account is incorrecly recorded due to putting in the wrong figure or putting the balance on the wrong side.
What is an omission error?
If a balance is completely missed from the trial balance.
What is the two entries of one side error?
It is when there is 2 debits or 2 credits in two accounts, rather than a corresponding debit and credit entry.
