Topic 8: Errors Flashcards
What is error of omission?
it is when a transaction has been completely omitted from the books
What is error of commission?
it is when we enter the correct amount in the wrong account in the same class
What is error of principle?
It indicates failure to understand double entry properly
What is compensating errors?
This is when 2 separateand independant errors cacel eachother out by chance
What is error of original entry?
It is when we do the correct double entry but with wrong numbers
What is a Transposition error?
it is when we made the corect entry but we used the wrong sequence of individual characters in a number e.g 85 instead of 58
What is a complete reversal of entries error?
when the correct amount is used but the entry is done on the wrong side of each account
