ERRORS NOT AFFECTING THE TRIAL BALANCE

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This PowerPoint presentation looks at the errors which occur but do not affect the trial balance totals and how these errors should be corrected when located.

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ERRORS NOT AFFECTING THE TRIAL BALANCE :

CREATED BY: BRIAN HENRY ERRORS NOT AFFECTING THE TRIAL BALANCE

Errors not affecting the trial balance :

Errors not affecting the trial balance These are errors which occur but do not cause the balances on the trial balance to be in disagreement. The following are examples of errors which do not affect the trial balance: Error of omission Error of original entry Error of commission Error of principles Complete reversal of entry Error of transition

Error of omission:

Error of omission This is where the full transaction is omitted from the books of accounts. For example sold goods to Miss Brown for $100. No entry was made in either the sales account nor Miss Brown account . To correct Credit: Seles $100 Debit: Miss Brown $100 Details: Error of omission now corrected

Error of original entry :

Error of original entry This is where wrong original amount in accounts are recorded in both accounts. For example, a $30 sale to Mr. Brown was wrongly entered as $50 in both the sales account and Mr. Brown’s account How to correct Debit: Sales account $20 Credit: Mr. Brown $20 Details: Error of original entry now corrected

Error of commission :

Error of commission This is where the correct amount is entered but in the wrong PERSON’S account. For example sales of goods to Mr. A were entered in Mr. B account How to correct Debit: Mr. A Credit: Mr. B Details: Error of commission now corrected

Error of principles :

Error of principles This is where the correct amount is entered but in the wrong CATEGORY of account. F or example purchase of fixed asset $500 was entered in expenses account How to correct Debit: Fixed asset Credit: Expense Details: Errors of principle now corrected

Complete reversal of entry :

Complete reversal of entry This is where the correct amount is entered and in the correct account but on the wrong side of both account. For example we have received cash $500 from Mr. Z. The correct entry should be Cash=Debit and Mr. Z=Credit but we have recorded as Mr. Z=Debit and Cash=Credit. How to correct Debit: Cash (500*2=1000) Credit: Mr. Z (500*2=100) Details: Error of complete reversal now corrected

Error of transition :

Error of transition This is where the sequence of digits of a figure in a transaction is switched. For example sales amount to $123 to M r. brown were entered as $321. How to correct Debit: Sales(321-123=198) Credit: Mr. Brown(321-123=198) Details: Error of transition now corrected

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