Error and correction of error Flashcards Preview

Bookkeeping level 2 > Error and correction of error > Flashcards

Flashcards in Error and correction of error Deck (7)
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1
Q

Error commission

A

correct amount , wrong person’s account

2
Q

Error of principle

A

Transaction is entered in wrong type of account

3
Q

Error of original entry

A

original amount is incorrect and is then entered in double entry

4
Q

Error of omission

A

Transactions not entered

5
Q

Compensating errors

A

Errors which cancel each other out

6
Q

Complete reversal of entries

A

Correct amount in the wrong side for both. eg debit in a credit and vise versa

7
Q

When do you need a suspense account

A

2 debits, 2 credits, one entry, 2 different amounts