Types of errors

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  • Types of errors
    • Errors of omission
      • Where a transaction is completely omitted from the books
    • Errors of commission
      • Occurs when the correct amount is entered but in the wrong account
    • Errors of principle
      • Where an item is entered in the wrong class of account
    • Compensating errors
      • Where errors cancel each other out
    • Errors of original entry
      • Where the original figure is incorrect yet double entry is correctly done using the  incorrect figures
    • Complete reversal of entries
      • Where the correct amounts are used but each item is shown on the wrong side of the account
    • Transposition of errors
      • Where the wrong sequence of the individual characters within a no. was entered

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