accounting: errors

poorcc errors

principle

this occurs when a transaction is entered using the correct amount and on the correct side, but in the wrong class of an account

omission

this occurs when a transaction has been completely omitted from the accounting records. neither a debit or credit entry has been made

original entry

this occurs when an incorrect figure is used when a transaction is first entered in the accounting records. the double entry will therefore use the incorrect figure

reversal

this occurs when the correct amount is entered in the correct accounts, but the entry has been made on the wrong side of the account

compensating errors

these occur when two or more errors cancel each other out

commission

this occurs when a transaction is entered using the correct amount and on the wrong side, but in the wrong account of the same class.