In accounting terms how many types of errors are there?

1.       Error of Principle – When Amounts are correct but types of accounts are posted wrongly. (E.g. Fixed Assets posted as monthly expenditure)

2.       Error of Original Entry - Wrong amounts but correct account

3.       Compensating Error - When Multiple errors are rectified in one transaction

4.       Error of Omission - Missing Accounting Entries

5.       Error of Commission - Correct Amount, Type of Account but wrong Account ((E.g. Payable to one supplier is posted mistakenly to another)

1. Error of commission

2. Error of principle

3. Error of ommission

Error of Omission

Error of Commission

Error of Principle

Transposition Error 

Compensating Errors

An accounting error is a non-fraudulent discrepancy in financial documentation.

Briefly they are;

*Error of commission

*Error of principle

*Error of ommission