Common Accounting Errors

Front

Error of omission

Back

Entry of a transaction has been completely missed off. Both Dr and Cr sides of the transaction are missing, leading to incorrect totals.

Front

Error of commission

Back

Entered into the wrong account (but it’s the correct type of account), e.g., an invoice for K Cooper entered into the account of Cooper & Sons.

Front

Error of principle

Back

Entered into the wrong type of account, e.g., an expense entered in an income T account.

Front

Error of original entry

Back

Wrong figures have been entered, which could be a transposition of figures.

Front

Reversal of entries

Back

Where the incorrect ‘side’ of account has been used, requiring a ‘x 2’ adjustment.

Front

Compensating error

Back

When errors in the totals on unrelated accounts cancel each other out.