Errors not detected by the trial balance

Question 1

Name three or more errors that aren’t detected by the trial balance.

Answer 1

Error of Original Entry, Compensating error, error of Omission, error of Commission, error of Principle, Reversal of Entries.

Question 2

What is Error of Original Entry?

Answer 2

This is where the wrong figure is entered as both the debit and credit entry, meaning the figures are wrong on both sides.

Question 3

What is a Compensating error?

Answer 3

This is where the two seperate errors of the same amount are made, one on the credit side and one on the debit side.

Question 4

What is Error of Omission?

Answer 4

This is where the entire double entry is omitted from the ledger accounts.

Question 5

What is Error of Commission?

Answer 5

With this type of error a debit and a equal credit have been made but one of the entries has been made to the wrong account.

Question 6

What is Error of Principle?

Answer 6

It is similar to the error of commission but the entry has been made into the wrong type of account.

Question 7

What is Reversal of Entries?

Answer 7

Debit and credit entries have been made in the correct accounts but have been made to the wrong sides of the accounts.