Chapter 16
KAPLAN PUBLISHING
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4
Types of error
This shows that whilst the trial balance provides a useful control mechanism for
detecting errors, a balanced trial balance does not guarantee the accuracy of
the financial statements.
Errors where the trial balance still balances
•
Error of omission
: A transaction has been completely omitted from the
accounting records, e.g. a cash sale of $100 was not recorded.
•
Error of commission:
A transaction has been recorded in the wrong
account, e.g. rates expense of $500 has been debited to the rent account
in error.
•
Do'stlaringiz bilan baham: