Errors Not Affecting The Trial Balance Updated

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
www.igcseaccounts.com
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
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
D Short Account
D Small
$
500
$
500
Cr
$
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
principle.
Dr
May 14
Dr
May 31
Bank
Motor Expenses Account

$
55,500
May 31
Motor Vehicle Account

$
55,500
Motor
Vehicle
Motor
Expenses
Cr
$
55,500
Cr
$
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
original entry.
Dr
Sales Account
$
Dr
May 13
May 31
May 13
T. Biggins
May 31
T. Biggins
Sales
Sales
T. Biggins Account
$
1,300
200
Cr
$
1,300
200
Cr
$
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
ommission.
Purchases Ledger
Dr
T Slope Account
$
May 31
Cr
Purchases
$
2,500
General Ledger
Dr
May 31
Purchases Account
T Slope
$
2,500
Cr
$
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
Dr
May 31
Total
Purchases
Day Book
(Overcast
by $100)
Purchases Account
$
4,500
May 31
Cr
Sales
$
100
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
Purchases Ledger
Dr
May 28
D Charles Account
$
2,000
May 31
Bank
(Cash
Book)
Bank
(Double to
cancel out
error and
put on
correct side)
Cr
$
4,000

Errors Not Affecting The Trial Balance Updated

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Errors Not Affecting The Trial Balance Updated

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Prepared by D.

Errors Not Affecting the Trial Balance

1- Errors of Commission: D Short paid us by cheque $500 on 18th May 20X8.

2- Errors of Principle: The purchase of a motor vehicle $55,500 by cheque on 14

Motor Expenses Account

Motor Vehicle Account

3- Errors of Original Entry: Sales of $1500 on May 13 20X8 to T. Biggins

4- Errors of Omission: A firm purchased goods from T Slope on May 13 20X8

5- Compensating Errors: A firms Sales Day Book added up incorrectly to $100 to

6- Complete Reversal of Entries: We pay a cheque to D Charles on 28 May

Bank (Cash Book) Account

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