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Difference between principle and transposition error?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Difference between principle and transposition error?

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • December 21, 2015 at 2:42 am #292301
    AvatarQuốc Anh
    Participant
    • Topics: 41
    • Replies: 23
    • ☆☆

    Could you please give me some example why the error of principle will be revealed in trial balance otherwise the transposition will??

    December 21, 2015 at 8:46 am #292325
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    An error of principle is where one entry has been posted to the wrong account, but debit will still equal credit and therefore the trial balance will still balance.
    A transposition error is where one of the entries has the numbers reversed, so the debit will not equal the credit and therefore the trial balance will not balance.

    December 22, 2015 at 4:58 am #292432
    AvatarQuốc Anh
    Participant
    • Topics: 41
    • Replies: 23
    • ☆☆

    Thanks you alot:)

    December 22, 2015 at 7:28 am #292444
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

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