ACCOUNTING ERRORS

The following errors may occur even though the Trial Balance is balanced, EXCEPT

• posting to only one side of an account

• error of commission

• complete reversal of entries

• error of omission

When a transaction was recorded in a wrong class of account, the error is known as

• error of principle

• error of commission

• error of omission

• compensating error

A credit sale of RM10,000 to Lynda was credited to sales account but wrongly debited in Linda's account (a receivable). This is a/an _____________

• error of omission

• error of commission

• compensating error

• error of original entry

A receivable account is overstated by RM1,200 and a payable account is also overstated by RM1,200. This is called a/an __________________

• compensating error

• error of principle

• error of original entry

• error of commission

Adam Trading made settlement for utilities bills amounting to RM650 by cheque. However, the account clerk has credited the bank account with an amount of RM560. The error made by the account clerk is known as

• error of original entry

• compensating error

• error of transposition

• posting to incorrect side of account

An account clerk has mistakenly recorded a rent received by cheque by debited rent received account and credited bank account. Identify the error:

• compensating error

• Error of reversal entries

• Error of commission

• Error of principle

One of the errors that affect Trial Balance agreement is

• error of omission of part of an entry

• error of reversal entries

• error of commission

• error of principle

Payment for repairs of motor vehicle by cash RM800 was correctly recorded in the cash account but incorrectly recorded in the motor vehicle account. Identify the error:

• error of commission

• error of omission

• error of principle

• error of reversal entries

The cash sales to Mike Trading amounting to RM800 had only been recorded in the credit side of sales account. The error involved in the transaction is called ______________

• error of principle

• error of omission

• omission of part of an entry

• error of transposition

Trial Balance does not indicate that all business transactions recorded is correct. The following are the accounting errors that do not affect the Trial Balance:

i. Error of transposition

ii. Error of original entry

iii. Error of principle

iv. Error of commission

• i, ii and iii

• i, iii and iv

• ii, iii and iv

• iii and iv