Accounting Errors

Accounting Errors

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු

With suitable examples, write the meaning of errors of principles.
Write the meaning of errors of principles with suitable examples.
Explain the principle error with examples.

ERROR OF ACCOUNTING

The mistakes may be while recording, casting, carrying forward, posting and summarising the financial transactions.
Various types of errors are possible while maintaining the books of accounts.
When an accountant does not know properly about capital and revenue, principle of error occurs.
There are different types of capital and revenue.
• Capital income and revenue income
• Capital expenditure and revenue expenditure
• Capital receipt and revenue receipt
• Capital profit and revenue profit

Write in short the meaning of error of omission and error of commission.
Error of omission and error of commission are the part of clerical errors.

ERROR OF OMISSION AND ERROR OF COMMISSION

Errors of omission
When financial transaction is not recorded in journal entries or ledgers, it is known error of omission.
Such error does not affect total of trial balance.
Errors of commission
When financial transaction is recorded wrongly, it is known error of commission.
These errors are raised due to careless.

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Click on link for YouTube videos CHAPTERS OF CLASS 11

ACCOUNTING EQUATION  http://tiny.cc/c89jkz

BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz

BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz

JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz

LEDGER http://tiny.cc/haakkz

SUBSIDIARY BOOK http://tiny.cc/399jkz

CASH BOOK http://tiny.cc/889jkz

TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz

BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz

DEPRECIATION http://tiny.cc/ugakkz

FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz

ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz

CAPITAL AND REVENUE http://tiny.cc/peakkz

SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz

NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz

GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz

GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz

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With suitable example write the meaning of compensating errors.
Write the meaning of compensation errors with example.
Classify the meaning of compensating error.

COMPENSATING ERRORS

When one transaction is under-casted but other transaction is over-casted by same amount, it is known compensating error.
Suppose rent paid is under charged by Rs 5,000 but insurance paid is overcharged by Rs 5,000.
Such error does not affect total of trial balance.

Write the meaning of ‘errors of duplication’ with example.

ERRORS OF DUPLICATION

When transaction is written correct but recorded in twice (two times), it is known error of duplication.
This error may be in journal entries, ledger and subsidiary book.
Suppose wages paid Rs 15,000 is recorded twice.
Such error does not affect total of trial balance.

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