When I'm reading the BPP book it has 6 types of errors, while opentuition notes have 4. Also when I'm going through the examples, both books do not agree with their examples. Is there anyone else who has similar issue? Bpp book says something else about principle error, opentuition book says something else. same with other errors.
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Types of errors.
A simple solution to this and many other differences that you'll surely find in future would be to choose one of the resources. Either use BPP Study Text or Opentuition Notes. Since there are so many differences in these 2, you will keep getting confused.
But, whichever option you choose, you MUST buy a revision kit from BPP or Kaplan. Thats the most important thing for preparation.
At all we Have 5 kinds of errors in BPP
Compensating
Principle
Commission
Transposition
Omission
Short Formula is (CPCTO)
Can anyone explain those errors in short
6y ago#4Compensating: by accident two errors cancel so that the trial balance still balances. Eg
Buying some printer ink:
Dr Stationery 100 Cr Cash 80
Make a cash sale
Dr Cash 115 Cr Sales 135
Sum of Drs and Crs are equal: 215
Principle
Recording and expense as the acquisition of a non-current asset.
Commission
Post eg the same invoice twice
Omission
Not posting the invoice at all
Transposition
Really, just a type of error by commission Dr 235, Cr 253
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