Errors! Does not tally! Why? .
Meaning of errors Error means recording or classifying or summarising the accounting transactions wrongly or omissions to record them by a clerk or an accountant unintentionally. . Errors at different stages of accounting In the accounting process, errors may occur in any of the following stages: A) At the stage of journalising At this stage, the following types of errors may occur: (i) Error of omission (ii) Error of commission (iii) Error of principle B) At the stage of posting At this stage, the following types of errors may occur: (i) Errors of omission (a) Error of complete omission (b) Error of partial omission (ii) Error of commission (a) Posting to wrong account (b) Posting of wrong amount (c) Posting to the wrong side C) At the stage of balancing At this stage, the following types of errors may occur: (i) Wrong totalling of accounts (ii) Wrong balancing of accounts D) At the stage of preparing trial balance At this stage, following types of errors may occur: (i) Error of omission Accountancy (ii) Error of commission (a) Entering to wrong account (b) Entering wrong amount (c) Entering to the wrong side of trial balance, etc. .
Classification of errors Errors Errors of omission Errors of commission Errors of principle Compensat ing errors The errors can be classified into four types as follows: . . Error of omission The failure of the accountant to record a transaction or an item in the books of accounts is known as an error of omission. It can be complete omission or partial omission.
(i) Error of complete omission It means the failure to record a transaction in the journal or subsidiary book or failure to post both the aspects in ledger. This error affects two or more accounts. Examples a Purchase of a machine from Aadhavan & Co. on credit is not recorded in the journal.
b Sale of goods to Arivuchelvan on credit not recorded in the sales book. (ii) Error of partial omission When the accountant has failed to record a