I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

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   Types of error in accounting 

There are five main types of error. Some can be corrected by journal entry; some require the use of a 

suspense account. 

It is not really possible to draw up a complete list of all the errors which might be made by bookkeepers 

and accountants. Even if you tried, it is more than likely that as soon as you finished, someone would 

commit a completely new error that you had never even dreamed of! However, it is possible to describe 

five frequent types of error. They are as follows. 

 Errors 

of 

transposition 

 Errors 

of 

omission 

 Errors 

of 

principle 

 Errors 

of 

commission 

 

Compensating errors 

Once an error has been detected, it needs to be put right. 

(a) 

If the correction involves a double entry in the ledger accounts, then it is done by using a journal 

entry. 

(b) 

When the error breaks the rule of double entry, then it is corrected by the use of a suspense