types of errors

Single Entry

Only one side of the double entry has been made. The TB will not balance

Casting error

ledger account has not been balanced correctly due to casting - addition or subtraction mistakes leading to an incorrect balance.

Transposition

The amount in the ledger account or a balance on a ledger has been transposed and incorrectly recorded. This error occurs when digits are reversed, leading to inaccuracies in financial records.

Extraction error

a ledger account balance is incorrectly recorded on the TB. Either entering the wrong value or entering on the wrong side

Omission

a ledger account balance is missed from the TB

Two entries on one side

a transaction is entered as Dr or Cr in two accounts rather than one in each

Error of original entry

a wrong figure is entered in both the Dr and Cr. (TB will balance still)

Compensating error

Two different errors are made (one Dr, one Cr) but by coincidence the errors are the same amount and therefore cancel each other out.

Error of omission

a double entry is missed entirely from the ledger account. TB not affected

Error of Commission

The double entry has been made, but one of the entries is to the wrong account (correct side). E.G heating debited to rent. TB will balance, but wrong account used.

Error of principle

Entry has been made to the wrong TYPE of account. E.G. electricity debited to a non-current asset account (wrong page)

Reversal of entries

Debit and credit entries made in the correct accounts in the GL but have been made to the wrong sides of the account. TB will balance.