Errors that have no effect on the trial balance totals
include:Errors of omissionCompensating errorsErrors of
commissionErrors of complete reversalErrors of principleErrors of
original entryTransposition errors
A Brief Description of Each Error Errors of omissionAbsolutely
no entry was made in the ledger.Compensating errorsErrors that
cancel each other.Errors of commissionEntries are made on the
correct sides but in the wrong personal accounts.
A Brief Description of Each Error Errors of complete
reversalEntries made in the correct accounts but each item is
recorded on the incorrect side. Errors of principleCorrect amounts
recorded in the wrong class of accounts.
A Brief Description of Each Error Errors of original entryThe
incorrect amount was recorded on the correct sides of each account.
Transposition errorsThe digits for the transaction amounts are
rearranged.
Errors that have no effect on the trial balance totals
include:Worked ExampleShow the journal entries to correct the
following errors. Make all adjustments on 31 Dec. 2009(a)The
purchase of a van on credit from Van Plus Ltd. for $143 900 had
been completely omitted from the records.(b)The sales journal and
the purchases journal were each over-added by $2 200.
Errors that have no effect on the trial balance totals
include:Worked Example(c)A credit purchase of goods from R. Francis
for $500 was entered in B. Francis account.(d)An electricity
payment by cheque $75 was entered on the receipts side of the bank
account and the wrong side of the electricity account.
Errors that have no effect on the trial balance totals
include:Worked Example(e) Rental income of $7520 had been entered
in the sales account.(f) A sale of goods for $900 to S. Angel was
entered in the ledgers, both on the credit and debit sides, as
$600.(g) A cheque payment to J. Mark for $9731 was entered in the
accounts as $1397.
Errors that have no effect on the trial balance totals
include:Solution to Worked Example
Errors that have no effect on the trial balance totals Solution
to Worked Example
Errors that have no effect on the trial balance totals Solution
to Worked Example
Errors that have no effect on the trial balance totals
include:These errors will cause the trial balance totals to
disagree resulting in one side being larger than the other. When
the trial balance totals do not agree a suspense account is created
as a temporary means of getting the totals to be the same. The
difference is normally caused by several errors. Each error must be
corrected with the aid of a suspense account.
