6 unrevealed errors

1. Error of commission

Transaction is entered using correct amount, on correct side, but in the wrong account of the same class

2. Error of complete reversal

Correct amount is entered in the correct accounts, but the entry has been made on the wrong side of each account

3. Error of omission

Transaction has been completely omitted

4. Error of original entry

An incorrect figure is used when a transaction is first entered in the accounting records.

5. Error of principle

Transaction if entered using the correct amount and on correct side, but in the wrong class of account

6. Compensating errors

These occur when 2 or more errors cancel each other out.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s