Error of original entry
An error of original entry occurs when the same incorrect amount is entered on both sides of a transaction. The trial balance may still agree, even though the affected balances are wrong. The correcting journal increases both the receivable and revenue by 90, the difference between the actual and recorded amounts.
Worked example
A sale of 540 is recorded as 450 in both revenue and the customer account.
Common mistake
Trying to clear a suspense account for an error that did not cause a trial balance difference.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |