Types of errors

Question 1

Errors that do not affect the trial balance.

Answer 1

Error of omission
Error of commission
Error of principle
Compensation error
Error of original entry
Complete reversal of entry

Question 2

What is error of ommission?

Answer 2

An entry is not entered in the books of 1st entry.

Question 3

What is error of commission?

Answer 3

An entry was posted in the wrong account (debtor and creditor) but the correct amount was used.

Question 4

What is error of principle?

Answer 4

Wrong type of account is used, for example it was supposed to be an expense account, but an asset account was used. Normally the correct amount was used.

Question 5

What is the compensation error?

Answer 5

More than one error, for the same amount, was made when the transaction was posted. The errors cancel one another out.

Question 6

What is the error of originality?

Answer 6

The double entry of the transaction is correct, but the wrong amount has been used.

Question 7

What is the complete reversal of entry?

Answer 7

The transaction was done totally incorrect. The account to be debited was credited and the account to be credited was debited wit the correct amount.

Question 8

Errors that do effect the trial balance.

Answer 8

• Addition and subtraction errors were made in the GL accounts and transferred to the trial balance.
• A posting error made when the incorrect amount is used from the GL to the trial balance.
• When only one amount was posted and the contra account’s information is not posted to the trial balance.