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Correction of Errors Notes PDF

The document discusses various types of errors in double-entry bookkeeping, including errors of commission, errors of principle, errors of omission (complete and partial), errors of complete reversal of entry, and errors of original entry. It also covers errors affecting and not affecting the trial balance, using suspense accounts, and making corrections or adjustments.

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Yogen Allagapen
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1K views4 pages

Correction of Errors Notes PDF

The document discusses various types of errors in double-entry bookkeeping, including errors of commission, errors of principle, errors of omission (complete and partial), errors of complete reversal of entry, and errors of original entry. It also covers errors affecting and not affecting the trial balance, using suspense accounts, and making corrections or adjustments.

Uploaded by

Yogen Allagapen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CORRECTION OF ERRORS

ERRORS

Errors NOT affecting Trial balance Errors affecting Trial Balance

Important point Important point

TYPES OF ERRORS IN DOUBLE ENTRY

Error of Commission

Example:

Actual Entry Wrong Entry Correction Entry

Error of Principle

Example:

Actual Entry Wrong Entry Correction Entry

Financial Accounting (FFA/F3) Notes |


Error of Omission

(a) Complete Omission

Example:
Actual Entry Wrong Entry Correction Entry

(b) Partial Omission


Example:
Actual Entry Wrong Entry Correction Entry

Example:
Actual Entry Wrong Entry Correction Entry

Error of complete reversal of entry

Example:
Actual Entry Wrong Entry Correction Entry

Error of Original Entry (Covering error of transposition)

(a) When the wrong amounts are posted to both the debit and credit entry
Actual Entry Wrong Entry Correction Entry

Actual Entry Wrong Entry Correction Entry

Financial Accounting (FFA/F3) Notes |


(b) When the different amounts are posted for the debit and the credit entry
Actual Entry Wrong Entry Correction Entry

Actual Entry Wrong Entry Correction Entry

Actual Entry Wrong Entry Correction Entry

Note:

Error of Compensation

Wrong Entry 1 Wrong Entry 2 Correction Entry

Entry 1 Entry 2 Correction Entry

SUSPENSE ACCOUNT

Financial Accounting (FFA/F3) Notes |


APPROACH TO QUESTIONS (ERRORS NOT EFFECTING TRIAL BALANCE)

1.
2.
3.

APPROACH TO QUESTIONS (ERRORS EFFECTING TRIAL BALANCE)

ADJUSTMENTS TO PROFIT

Financial Accounting (FFA/F3) Notes |

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