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Hi Mr John,
Which one of the following types of book-keeping error is never indicated when a trial balance of nominal ledger account balances is extracted?A Errors of commission
B Errors of omission
C Errors of principle
D Transposition errorsI do understand why B and D are not the correct answers.
‘A’ option confuses me. When can be Commission errors indicated by trial balance?
Please help.I don’t know where you found this question, but if you have copied it correctly then it is a very poor question.
An error of commission is when one of the entries has been posted to the wrong account. So it is similar to an error of principle, except an error of principle is where the entry and been to a SOFP account when it should have been a SOPL account (or vice versa), whereas an error of commission is where the entry has been to the wrong account but the same type of account (e.g. an expense entered into the wrong expense account).
Usually an error a commission will not be indicated when preparing the trial balance, because usually there will have been a debit and a credit even though one of them is to the wrong account. It is just possible that one of the entries has been to the wrong side of the wrong account, in which case it would be indicated when preparing a trial balance.
Many thanks for your explanations! Now it is clear for me.
This question from BPP learning Specimen Mock Exam
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