1.1 Is a summary of all the balances from the individual accounts in
the ledgers. It acts as an arithmetical check on accuracy of the
double-entry bookkeeping system, ensuring that accounting entries
are error-free prior to the compilation of the final accounts.
2 Error of Commission:
2.1 Occurs when one or both double entries are
made in the correct classification of account
but entered under the wrong name.
2.1.1 For Example: £100 - P.Smith
instead of £100 - B.Smith
3 Error of Omission:
3.1 Occurs when both double entries for
a transaction have been left out from
the book of accounts.
3.1.1 Transaction has not been records anywhere.
4 Error of Principle:
4.1 Occurs when one or both of the double
entries are made in the wrong classification
5 Compensating Error:
5.1 Where two or more opposing errors act to
cancel each other out.
6 Error of Original Entry:
6.1 Where the double entry for a transaction have
been recorded under the correct name but
with the wrong amount.
7 Error of Reversal:
7.1 The entries have been made
on the wrong side of
7.1.1 has been put in the correct account but
has been recorded as a debit instead of a