Errors of Correction Flashcards
1
Q
What are the errors NOT revealed by Trial Balance? (6)
A
- Errors of omission - Errors of commission - Errors of Original Entry - Errors in Principle - Compensating Errors - Complete Reversal of Entries
2
Q
What are the Erros revealed by Trial Balance? (4)
A
- Errors of omission of 1 entry - Errors in Calculation - Errors in Amount - Posting to the wrong account
3
Q
The three rules.
A
1 Identify correct entries #2 Identify wrong entries #3 Correct the entries
4
Q
Errors of Commission
A
When an entry has been posted to the wrong account of the same category.
5
Q
Errors in Principle
A
When an entry has been posted to an account of a different category.
6
Q
Errors of Original Entry
A
A wrong amount was recorded in the book of original entry.
7
Q
Compensating Errors
A
An error on the debit side is compensated by an error of equal amount on the credit side or vice versa.
8
Q
Errors in Calculation (Revealed in TB)
A
CASTING!~
9
Q
Errors in Amount
A
AMOUNT RECORDING~~
10
Q
Statement of Adjustment of Profit
A
