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
