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Trial balance is prepared when transactions posted into the accounts are balanced up. The trial balance is then prepared to check the accuracy of those posted transaction. It is normal some times that some errors may be apparent but despite this, they may not affect the trial balance. It is very important for any accounting officer to note that these may occur in one way or another.
Different types of errors which don’t affect the trial balance ,
Error of omission
Where in the full transaction is omitted from the books of accounts.
Error of commission
Where we have entered the correct amounts but in wrong person’s account.
Error of principle
This type of error takes place when an item is entered in wrong head or class of accounts.
Error of compensation
Are that errors which cancel the effects of each other.
Error of complete reversal of entries
These errors occur when we debit and credit the two or more aspects of a transaction wrongly using correct figures or amounts.
Error of original entry
Entering wrong original figure or amount in an accounts.
Error of transition
Error of transition can be defined as switching the sequence of digits of amount or figure of a transaction.
1- If an entry is completely not registered.
2- Wrong amount in both sides by the same amount (10 instead of100).
3- Entering debit instead of credit.
Type2 errors do not affect the balancing of trial balance. Detailed articles are written by friends.
In accounting there are two error groups. The first group affects the balancing of the trial balance and these errors are known as type1 errors. The second group of errors are known as type2 errors and these errors do not affect the balancing of the trial balance. This article focuses on type2 errors.
Type2 ErrorsType1 errors cause an imbalance between the debit balances and thecredit balances on the trial balance. Type2 errors are different because thedebit and credit balances on the trial balance are equal and errors have been made in the accounting process.
Type2 errors are difficult to detect or identify because the trial balance does not report any error, even though errors would have been made. Other internal control tools such as nominal accounts analyses, nominal accounts reviews and reconciliations should be used to identify and correct these type2 errors.
The main type2 accounting errors that do not affect the balancing of the trial balance are as follows:
1.Error of principle:Recording of entry in fundamental incorrect manner eg capital expenditure charged to revenue.
2.Compensating Error:Recording expenditure of6000 wrongly at Rs8000 while other expense of2000 not recorded at all.
All those errors for which
Will not appear on trial.
A lots of errors do not affects the trial balance sunch an error includes ,1. Error of complete omission2. Error of commission.3. error of principle4. error of original entry,5 error of compestion etc
There are several erros which do not effect the Trial Balance some of them are as follows:
wrongly posting of debit or credit of one head of account into another head of account.
e.g. Received $4000 from Smith but posted into Jorden account instead of smith.
some time revenue expenses posted to capital expenses in the same way capital expenses posted into revenue expenditure account.
a complete entry not recorded into the head of account did not effect the trial balance.
Type2 errors can be detected by revising the account balances .for example if the inventory balance was in negative that means there is entry mistake
Any erroer will affect the trial balance i think you mean erroers which will not appear in BS