Trial Balance

Question 1

7 types of error not revieled in a trial balance?

Answer 1

1. Error of commision - this arises when the double entry is correct aritmetically but the amounts has been entered in the wrong a/cs(same type of class accs)
2. Error of principles - this arises when double entry is aritmetically correct, but the amount has been entered in the wrong class of accs (expense entered as esset etc)
3. Error of omission - this occurs when a transacion has not been entered in the accounts at all.
4. Error of original entry - error occurs when the wrong figure is taken from the source document and then recorded on both ledgers.
5. Complete reversal of entries - the correct figures have been posted to the wrong side of both ledger accs.
6. Compensating error - this occurs when two or more errors of the same amount cancel each other out.
7. Duplication error - this occurs when a transaction is entered into the ledger accs more than once.

Question 2

Errors when trial balance figures do not agree?

Answer 2

1. A figure omited from one side of the accs;
2. Two debit entries or two credit entries for a transaction;
3. Over- or under- casting, i.e. incorrect totals of accs;
4. The reversal of transposition of figures, e.g. 32 for 23;
5. A ledger acc balance omitted from the trial balance;
6. Figures entered on the wrong side of T/b