2. Hello
students!
I am Pinocchio
Today’s lesson is about
the Errors not affecting the
Trial Balance.

3. At the end of this lesson you
should be able to:
Define and explain the different types of
errors not affecting the trial balance.
 Correct errors that are not revealed by the
trial balance.
Distinguished between the different types of
errors that may arise.

4. From here on, my friends will
tell you all about the
different types of errors…

5. Introductio
n
Errors Game

6. The trial balance process does not detect every
error that could be made in an accounting
system. You can produce a Trial Balance where
the totals agree, but you make a wrong debit and
credit entry for the wrong amount, or record the
debit and credit entry in the wrong account.
These mistakes are classified as “Six (6) types of
error not revealed by a Trial Balance”. Each error
has to be corrected by making journal entries
which are then posted to the ledger accounts.

7. Commission
Complete reversal Compensation
Original entry
PrincipleOmission
Errors of

8. This type of error is where a
transaction is completely
omitted from the books (sales,
purchases, return inwards and
return outwards journals).

9. EXAMPES OF ERRORS OF OMISSION
We sold $100 goods to Mr. Bryan, but did
not enter it in either the sales account or
Mr. Bryan’s personal account.
NB…. The trial balance would still be
balanced.
Extra Lesson

10. ERRORS OF
COMMISSION
This type of error
tends to occur
when the correct
amount is entered
but in the wrong
account.

11. Extra Lesson
EXAMPLE OF THE ERROR OF
COMMISION
Where the sale of goods
amounting to $350 to M. Kelly
is entered in the books of N.
Kelly.
NB: the trail balance will still
be balanced.

12. ERRORS OF PRINCIPLE
Where an item is
entered in the wrong
class of account.

13. Example of error of
principle
Purchase of a fixed asset,
such as van is debited to
an expense account such
as motor expenses
Extra Lesson

14. This is
where
errors
cancel
each
other
Compensatin
g Error

15. Example of compensating error:
• Rohan’s a/c is debited by $2500 while it was to be debited
by $3500 and Mohan’s a/c is debited by $3500 while the
same was to be debited by $2500. Thus excess debit of
Mohan’s a/c by $1000 is compensated by short credit of
Rohan’s a/c by $1000. As the debit amount and the credit
amount are equalised, such errors do not affect the
agreement of Trial Balance, but the fact remains that there
is still an error.
• There is an overstatement of $1,000 each in the Sales a/c
and Purchases a/c which compensated for each other.

16. This is where the original
figure is incorrect, yet the
double entry is correctly
done using the incorrect
figure.

17. EXAMPLE OF ORIGINAL
ENTRY
Where a sale should have totalled $230 but
an error is made in calculating the total on
the sales invoice. If it were calculated as
$320, and $320 were credited as sales and
$320 were debited to the personal account
of the customer.
NB: the trial balance would still be balanced.
Extra Lesson

18. This is where the correct
accounts are used but each item
is shown on the wrong side of
the account.

19. We had paid a cheque to H. Henry
for $100, the double entry of
which should be debit H. Henry
$100, credit bank $100. in error it
is debit bank $100 and credit H.
Henry $100
NB: the trial balance still agrees.
EXAMPLES OF COMPLETE REVERSAL
Extra Lesson

20. Play “True or False errors” game
and test yourself…

21. To the
Help

22. Read the question then click on the “True” or
“False” button.
If the answer is correct you will move to the next
question
If your answer is incorrect then you will have to
start all over again
The aim is to get all six questions correct without
restarting.
Beware, the night forest is dangerous!

24. Error of complete
reversal is where the
account that should
have been debited is
credited in error and
the account that
should have been
credited id debited.
Tru
e
Fals
e

25. Error of
completion is
where two or
more errors
cancel each
other out
Tru
e
Fals
e

26. Error of original
entry is where an
item is entered, but
both debit and
credit entries are of
the same incorrect
amount
Tru
e
Fals
e

27. Error of Principle is
where a correct
amount is entered, but
in the wrong person’s
account
Tru
e
Fals
e

28. Error of
omission is
where a
transaction is
not entered in
the books at
allTru
e
Fals
e

29. commission is
Where a debit
or credit
entry is made
in the wrong
type of
accountTru Fals