(ix) Posting a wrong amount to a wrong account Example Goods sold to Naveen on credit for ` was entered in the sales book and posted to Praveen’s account as ` . (x) Double posting in an account Example Goods sold to Parimalam on credit for ` entered in the sales book and posted twice to Parimalam’s account. (xi) Entering a transaction twice in the journal Example Goods sold to Mohanambal for ` , was entered twice in the sales book. (xii) Errors arising in carrying forward from one page to the next page of an account While carrying forward the total of one page of a ledger account to the next page, the wrong amount may be recorded.
Example The total of page No. of the sales account of ` , is carried forward to page No. as ` , . Accountancy (xiii) Error arising in the balancing of an account Sometimes, at the time of balancing a ledger account, the wrong balance may be written.
. . Error of principle It means the mistake committed in the application of fundamental accounting principles in recording a transaction in the books of accounts. The following are the possibilities of error of principle: (i) Entering the purchase of an asset in the purchases book Example Machinery purchased on credit for ` , by M/s.
Anbarasi garments manufacturing company entered in the purchases book. (ii) Entering the sale of an asset in the sales book Example Sale of old furniture on credit for ` was entered in the sales book. (iii) Treating a capital expenditure as a revenue expenditure Example An amount of ` , spent on the construction of an additional room is debited to repairs account. (iv) Treating a revenue expenditure as a capital expenditure Example An amount of ` , paid for repairs to a machine is debited to machinery account.
. . Compensating errors The errors that make up for each other or neutralise each other are known as compensating errors. These errors may occur in related or unrelated accounts.