Chapter 7
Correction of errors – suspense accounts
Trial balance
↳A list of all debit and credit balances taken from the ledgers including the
cashbook.
Errors not revealed by the trial balance
1) Error of omission
A transaction has not been entered in the accounts
2) Errors of principle
A transaction has been entered on the correct side but in the wrong
class of account
3) Error of commission
A transaction has been entered on the correct side in the correct
class of account but in the wrong account
4) Compensating errors
One error cancels out another
5) Error of original entry
Errors made in the books of first (original) entry
6) Complete reversal of entry
The correct accounts and figures are used but on the incorrect side
of both accounts
Errors of
principle
Error of
commission
Complete
reversal of entry
Error of
original entry
Compensating
errors
Error of
omission
Errors NOT Revealed
by Trial Balance
