Errors

Question 1

Error of omission

Answer 1

This is when an entry is completely missed out of the books

Question 2

Reversal of entries

Answer 2

This is when the debit and credit entry have been entered the wrong way round

Question 3

Error of commission/mispost

Answer 3

Amount entered in wrong named account

Question 4

Error of principle

Answer 4

This is when the wrong classification of account has been used

E.g. the cost of fuel £30 has been debited to Vehicles a/c

Question 5

Error of original entry

Answer 5

The original amount was wrong in both accounts

Question 6

Compensating error

Answer 6

This is when accounts that are one debit and one credit are both too high (overcast) or too low (undercast)

Question 7

What are the errors that are revealed by a trial balance

Answer 7

• omission of one part of the double entry transaction (a single entry)
• recording 2 debits or 2 credits for a transaction
• recording a different amount for a transaction on the debit side from the credit side (unequal posting)
• error of addition in trial balance
• error in transferring the balance of an account to the trial balance (extraction error)
  -when digits in a number are accidentally swapped (transposition)