• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Errors in trial balance

Forums › FIA Forums › FA2 Maintaining Financial Records Forums › Errors in trial balance

  • This topic has 4 replies, 2 voices, and was last updated 1 year ago by maximus07.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • May 10, 2021 at 8:37 am #620193
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    The book is telling two different errors
    – Posting incorrect amounts
    – Original entry
    It is saying that, incorrect amount is posting any wrong amount from invoice while original entry is posting wrong amount from a Day book.
    I still can not figure out difference, can you help me how these two are different?

    May 10, 2021 at 12:05 pm #620208
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10194
    • ☆☆☆☆☆

    The commonest classifications of double entry errors are:

    – An error of original entry occurs when a figure is entered into the accounts incorrectly.
    – An error of principle is when entries are made into the wrong type of account (eg to non-current assets rather than expenses).
    – An error of commission is similar to an error of principle as entries are made into the wrong account but this time in the right category is used (eg posting to wages rather than rent)

    Sometime compensating errors are also talked about where two errors cancel out – but these are rare.

    I suppose in your classification, an error of original entry would be entering a cash receipt as $413, when it was actually for $431. Both the Dr and Cr are wrong.

    Posting the incorrect amount would be entering $431 in the cash book (correct) but $413 in the receivables ledger.

    May 10, 2021 at 1:18 pm #620212
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    Sir you mean to say that posting incorrect amount is same as original entry (one sided)?

    May 10, 2021 at 4:58 pm #620235
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10194
    • ☆☆☆☆☆

    An error of original entry is usually two-sided: an error of original entry would be entering a cash receipt as $413, when it was actually for $431. Both the Dr and Cr are wrong.

    Posting incorrect amounts could include errors of original entry but also: entering $431 in the cash book (correct, no error of original entry) but $413 in the receivables ledger.

    May 10, 2021 at 5:21 pm #620236
    maximus07
    Participant
    • Topics: 407
    • Replies: 398
    • ☆☆☆☆

    Yes sir. I got it. Thank you.

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • Ravendra Arjune on FA Chapter 22 Questions Group Accounts The Consolidated Statement of Financial Position (1)
  • Ken Garrett on The Nature of Performance Management – ACCA Advanced Performance Management (APM)
  • Mustafy on Objective of financial reporting – ACCA Financial Reporting (FR)
  • John Moffat on IAS 16 Property, Plant and Equipment – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy