Prepared by D.
El-Hoss
Errors Not Affecting the Trial Balance
With these types of errors, the debit and credit columns of the Trial Balance will still
be the same total.
These errors are corrected by means of JOURNAL ENTRIES.
Types of errors:
1. Errors of Commission correct amount but wrong persons account eg
entered the amount into Davies account instead of Davids account.
Journal entry cancel out of the wrong persons account and put it into the
correct persons account
2. Errors of Principle the transaction was entered into the wrong type of
account eg entered the amount into the asset Vehicles instead of the expense
Motor Expenses
Journal Entry cancel out of the wrong account and put it into the correct
account
3. Errors of Original Entry the wrong amount was entered into the ledger
accounts. Eg 100 instead of 1000
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Journal entry entry for the difference between the correct and incorrect
amounts
4. Errors of Omission a transaction which was not entered in the books at all.
Eg an entry which should have been put in the sales day book
Journal entry the entry will be the same as you would post from the day book
concerned
5. Compensating errors errors which cancel each other out eg when balancing
the ledger account, the purchases account was added up by 100 too much as
was the Sales account.
Journal entry cancel the error by putting the amount on the opposite sides of
each account
6. Complete Reversal - the amount is entered on the wrong sides of both
accounts
Make sure the amount is DOUBLED
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Prepared by D. El-Hoss
The double-entry for correction of errors not affecting the Trial Balance
1- Errors of Commission: D Short paid us by cheque $500 on 18th May 20X8.
It is correctly entered in the cash book, but it is entered by mistake in the
account for D. Small. We find the error on May 3 l 20X8.
Journal
Date
Details
Dr
Cr
20X8
May 31
D Short
500
D Small
Narrative
500
Correction of error of
commission.
Dr
May 18
Dr
May 31
Bank
D Small Account
$
500
May 31
Cr
D. Short
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D Short Account
D Small
$
500
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$
500
Cr
$
Prepared by D. El-Hoss
2- Errors of Principle: The purchase of a motor vehicle $55,500 by cheque on 14
May 20X8 has been debited in error to a motor expenses account. In the cash
book it is shown correctly. We find the error on May 31 20X8.
Journal
Date
Details
Dr
Cr
20X8
May 31
Motor Vehicle
55,500
Motor Expenses
Narrative
55,500
Correction of error of
principle.
Dr
May 14
Dr
May 31
Bank
Motor Expenses Account
$
55,500
May 31
Motor Vehicle Account
$
55,500
Motor
Vehicle
Motor
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Expenses
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Cr
$
55,500
Cr
$
Prepared by D. El-Hoss
3- Errors of Original Entry: Sales of $1500 on May 13 20X8 to T. Biggins
have been entered as both a debit and credit entry of $1300 to the correct
accounts. We find the error on May 31 20X8.
Journal
Date
Details
Dr
Cr
20X8
May 31
T. Biggins
200
Sales
Narrative
200
Correction of error of
original entry.
Dr
Sales Account
$
Dr
May 13
May 31
May 13
T. Biggins
May 31
T. Biggins
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Sales
Sales
T. Biggins Account
$
1,300
200
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Cr
$
1,300
200
Cr
$
Prepared by D. El-Hoss
4- Errors of Omission: A firm purchased goods from T Slope on May 13 20X8
for $2500 but forgot to enter them into the accounts. We find the error on
May 31 20X8.
Journal
Date
Details
Dr
Cr
20X8
May 31
Purchases
2,500
T Slope
Narrative
2,500
Correction of error of
ommission.
Purchases Ledger
Dr
T Slope Account
$
May 31
Cr
Purchases
$
2,500
General Ledger
Dr
May 31
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Purchases Account
T Slope
$
2,500
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Cr
$
Prepared by D. El-Hoss
5- Compensating Errors: A firms Sales Day Book added up incorrectly to $100 to
much but by coincidence so did the Purchases Day Book. We find the error on
May 31 20X8.
Journal
Date
Details
Dr
Cr
20X8
May 31
Sales
100
Purchases
Narrative
100
Correction of
compensation error.
General Ledger
Dr
May 31
Purchases
Sales Account
$
100
May 31
Total Sales
Day Book
(Overcast
by $100)
Cr
$
9,500
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Dr
May 31
Total
Purchases
Day Book
(Overcast
by $100)
Purchases Account
$
4,500
May 31
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Cr
Sales
$
100
Prepared by D. El-Hoss
6- Complete Reversal of Entries: We pay a cheque to D Charles on 28 May
20X8. However the $2,000 is entered as a debit entry in the cash book (Bank)
and a credit entry in the D Charles account. We find the error on May 31
20X8.
Journal
Date
Details
Dr
Cr
20X8
May 31
Sales
100
Purchases
Narrative
100
Correction of
compensation error.
General Ledger
Dr
May 31
Bank (Cash Book) Account
$
D Charles
4,000
May 28
(Double to
cancel out
and correct
error)
D. Charles
Cr
$
2,000
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Purchases Ledger
Dr
May 28
D Charles Account
$
2,000
May 31
Bank
(Cash
Book)
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Bank
(Double to
cancel out
error and
put on
correct side)
Cr
$
4,000
