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Chapter 6 (Errors (Error of complete reversal of entries (When we debit or…
Chapter 6
Errors
Error of complete reversal of entries
When we debit or credit the two or more aspects of a transaction wrongly using correct figures or amounts
Error of compensation
Are errors which cancel the effects of each other
Error of original entry
Entering the wrong original figure or amount in an accounts
Error of principle
Takes place when an item is entered in wrong head/class of accounts.
Error of Omission
Where the full transaction is omitted from the books of accounts
Error of commission
Entered correct amounts, but into wrong accounts
Single entry
If only half the double entry has been made
Double sided entry
If both halves of double entry are made on same side
Balancing error
If ledger account has not been balanced correctly
Balancing omission
If the balance on a ledger account is missed out
Errors detected by trial balance
Transposition error
Getting figures mixed up, e.g 760 rather than 670
Partial omission error(single entry)
When only one side of transaction is recorded
Casting error
Either total Dr or Cr are miscalculated
Posting error
When one side of transaction is posted on wrong side of the account