- Accounting errors are the errors committed by persons responsible for
recording and maintaining accounts of a business firm in the course of
- Errors can be in the form of omission of recording of transaction in
various books or posting in ledger or mistake in totalling or recording
wrong amount or in wrong account.
- There can be accounting errors which affect the agreement of trial
balance and errors which do not affect the agreement of Trial Balance.
On the basis of nature accounting errors can be
- Errors of omission
- Errors of commission
- Errors of principle
On the basis of impact on ledger accounts errors can be :
- one sided errors
- two sided errors
- Errors should never be rectified by erasing or overwriting.
- Methods of rectification of errors are
- Before preparing trial balance, instant correction and correction
in the affected account.
- After preparing trial balance through suspense Account
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