Trial Balance and correction of errors Flashcards
1
Q
Define an error of OMISSION
A
The transaction was completely LEFT OUT. No debit or credit entry
2
Q
Define an error of COMMISSION
A
Correct amount, wrong ACCOUNT
3
Q
Define an error of PRINCIPLE
A
Where a transaction is entered in the wrong TYPE of account
4
Q
Define an error of ORIGINAL entry
A
Wrong FIGURE, correct double entry
5
Q
Define an complete REVERSAL of entries
A
SWITCHING of debit and credit entries, but correct accounts and amount
6
Q
Define a COMPENSATING error
A
A COMBINATION of two errors of the same amount which cancel each other out
7
Q
Name three errors which DO affect the trial balance
A
- ADDITION error
- Error in COMPLETING the double entry
- SINGLE entry error
