Errors not affecting trial
Error of principle
This arises when a transaction is recorded in the wrong class of account
without due regards to the fundamental accounting principle.
Example: A machine purchased for $10 000 cash has been debited to
purchases account.
Correct entry Error
DR Machinery DR Purchases
Account CR Account CR
Cash 10 000 Machinery 10 000
Correct Wrong
DR Cash DR Cash
Account CR Account CR
Machinery 10 000 Machinery 10 000
Correct Correct
Error of Commission
This arises when a transaction is recorded in the wrong personal account. It
occurs when a transaction is recorded in wrong account but to the correct
type of account.
Example: $400 paid to P. Collins by cheque was recorded in the account of J.
Collins.
Correct entry Error
DR P. Collins DR J. Collins
Account CR Account CR
Bank 400 Bank 400
Correct Wrong
DR Bank DR Bank
Account CR Account CR
P. Collins 400 P. Collins 10 000
Correct Correct
Error of omission
This occurs where a transaction has been completely omitted from the
books.
Example: A sale invoice to D. Riley $ 575 was completely omitted from the
books.
Correct entry
DR D.Riley
Account CR
Sales 575
Correct
DR Sales
Account CR
D.Riley 575
Correct
Complete Reversal of Entries
In this case the debit account is credited and the credit account is debited
with correct amount. The correction of this error requires the figure to be
doubled. (One to correct error and one for original entry)
Example: Rent paid $300 by cheque wrongly recorded as rent received.
Correct entry Error
DR Rent DR Rent
Account CR Account CR
Bank 300 Bank 300
Correct Wrong
DR Bank DR Bank
Account CR Account CR
Rent 300 Rent 300
Correct Wrong
Error of original entry
This occurs where the wrong amount is posted to both accounts although the
accounts to which entries were made are correct. It arises when there is an
error in amount in the source document before posting to the ledger.
Example: Goods returned from P. Wedge $639 was recorded in both
accounts as $369.
Correct entry Error
DR P. Wedge DR P. Wedge
Account CR Account CR
Purchases Ret. 639 Purchases Ret. 369
Correct Wrong
DR Purchases return DR Purchases return
Account CR Account CR
P. Wedge 639 P. Wedge 369
Correct Wrong
