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Errors
while recording
Accounting Entry

    • Following Errors which affecting the Trial Balance
    • When only one effect of a transaction is recorded in the ledger, for eg. rent paid in cash, if the entry is posted in cash but not in the rental account, obviously the trial balance will not match
    • Incorrect posting of the amount in one of the ledger, eg. The rent of INR 5,000 is paid in cash. Posting in Rent A / c is done for INR 5,000, Cash A / c is posted at IDR 12,000. Then also the trial balance will not match
    •  If any entry entered twice, the trial balance will not match either.
    • Following Errors which that do not affect the Trial Balance 
    • There are certain types of errors that will not affect the Trial Balance but there will still be errors. These are as follows:
    •  Error of omission: if any entry is completely omitted, the Trial Balance will be counted but it will be    incorrect and incomplete
    •  Offset error: if there are two errors offsetting each other, the trial balance will still match but not exact.
    • Errors that are not disclosed by Trial Balance

There are also errors that cannot be detected by a Trial Balance, these are as follows:

    • When the transaction is not recorded at all in the account books, that is, neither on the debit side nor on the credit side of the account, the trial balance will agree, this is called Default error.
    • When there is any variation in the amount, ex. instead of ‘INR 600, 6,000 is recorded, on both sides of general ledger accounts; trial balance will agree, this is called commission error.
    • When the accounts are not prepared according to the double entry principle, e.g. Purchase of a Machinery incorrectly debited to the purchase account: the trial balance will be accepted, this is called Principal Error.