Correction of Errors

• Some errors not apparent because columns of Trial Balance will still agree
• Some errors will be apparent because columns of Trial Balance do not agree

Errors which cause Trial Balance totals to not agree

• Only one entry made not both
• Both entries made on same side e.g. both debit
• Entry made on debit side different value to the one on the credit side
• Entries correct but balancing off is wrong, Overcast/Undercast

Correcting errors requires use of Suspense Account

Errors which do not affect the totals of Trial Balance

• Error of omission - Not been recorded at all
• Error of commission - Transaction involving individual debtor/creditor has been recorded in wrong individual account, other side correctly recorded
• Error of principle - Recorded in wrong type of account
• Error of complete reversal - Both sides of transaction recorded in right accounts but wrong way round
• Error of original…