Name some errors which are not disclosed by trial balance
- 6 Answers
- 29468 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / catherine gill
some errors not disclose by a trial balance are
1, Error of commission - where the correct amount in the wrong
persons account.
2, Error of principle - the correct amount is entered in the
wrong type of account
3, Error of complete omission - where the transaction is
completely omitted from the books.
4, Error of original entry - where the item is entered, but
both the debit and credit entries are incorrect.
5, Complete reversal of entries - where the correct amount
is entered in the account but each item is shown on the
wrong side of each account.
6, Compensating errors - where two errors of equal amounts
but on opposite side cancel out each other
| Is This Answer Correct ? | 28 Yes | 4 No |
Answer / ashok pradhan
ERRORS NOT DISCLOSED BY TRIAL BALANCE.;-
1-ERRORS OF PRINCIPLE,for exp.wages paid for fixation of a
new machine recorded in wages account.
2FULLY OMISSION,for exp.purchased goods, not recorded at
all.
| Is This Answer Correct ? | 17 Yes | 6 No |
Answer / kruthika
A trial balance only checks the sum of debits against the
sum of credits. That is why it does not guarantee that
there are no errors. The following are the main classes of
error that are not detected by the trial balance:
• An error of original entry is when both sides of a
transaction include the wrong amount.[1] For example, if a
purchase invoice for £21 is entered as £12, this will
result in an incorrect debit entry (to purchases), and an
incorrect credit entry (to the relevant creditor account),
both for £9 less, so the total of both columns will be £9
less, and will thus balance.
• An error of omission is when a transaction is
completely omitted from the accounting records.[1] As the
debits and credits for the transaction would balance,
omitting it would still leave the totals balanced. A
variation of this error is omitting one of the ledger
account totals from the trial balance.[2]
• An error of reversal is when entries are made to
the correct amount, but with debits instead of credits, and
vice versa.[1] For example, if a cash sale for £100 is
debited to the Sales account, and credited to the Cash
account. Such an error will not affect the totals.
• An error of commission is when the entries are made
at the correct amount, and the appropriate side (debit or
credit), but one or more entries are made to the wrong
account of the correct type.[1] For example, if fuel costs
are incorrectly debited to the postage account (both
expense accounts). This will not affect the totals.
• An error of principle is when the entries are made
to the correct amount, and the appropriate side (debit or
credit), as with an error of commission, but the wrong type
of account is used.[1] For example, if fuel costs (an
expense account), are debited to stock (an asset account).
This will not affect the totals.
• Compensating errors are multiple unrelated errors
that would individually lead to an imbalance, but together
cancel each other out.[1]
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / pauline
(1)error of omission-the transaction is completely omitted
from the books.
(2)error of commission- the correct amount is recordeed in
the wrong persons account.
(3)error of principle- the item is recordeed in the wrong
class of account.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / anauj gupta
other two are
1. compensating error :- e.g ram a/c is dr instead of
shyam a/c for recording credit sales
2. error commission :- e.g i dont remenr at this point
| Is This Answer Correct ? | 7 Yes | 7 No |
Answer / rahul
Error of Principal- Error at the time of posting the JV
Error of Omission - Not recording the JV in books of accounts
Compensating error - to rectify one error another wrong JV
is posted in books of accounts
Error of Commission- Wrong amounted recorded will booking
the JV.
| Is This Answer Correct ? | 0 Yes | 1 No |
Expand-------BDCA
what is live stock?
expalin Revenue and profit
WHAT DO WE MEAN BY CURRENT ACCOUNTS SEPARATE FROM SAVINGS ACCOUNTS.
What is Quick Book ?
how to calculate basic in provident fund under salaries?
how to get bank reconsilation statment
what is the adjusting entry for wages posted twice?
Guest expenses Rs 5500/-on behalf of partner Aravind was written as Hospitality. Rectify it
OUR BOOKS & ITR MISMATCH FOR RS.15000/- ON ACCOUNTS OF TDS ON RECIEPTS FY-09-10 . KINDY GIVE CORRECTION ENTRY TO MATCH THE BOOKS WITHI ITR. DEVENDRASINGH086@GMAIL.COM
WHAT IS ASSESMENT YEAR?
what is the diff b/w manufactring a/c & trading a/c?
Audit 
