Which of the following error is revealed by trial balance?Wrong amount entered in the book of original entryComplete omission of an entry from the book of original entryWrong amount entered in a ledger accountAll of the above (2024)

FAQs

Which of the following errors is revealed by the trial balance? ›

Errors of commission of posting of wrong amounts in both the accounts can be revealed by Trial Balance.

If a ledger account balance is incorrectly recorded on the trial balance – either by recording the wrong figure or putting the balance on the wrong side of the trial balance – then the trial balance will not balance.

For example, recording an unbalanced journal entry or a single-entry journal entry can cause the overall trial balance to be incorrect. These basic errors are typically caught by accounting software controls that prevent transactions with unequal debits and credits from being recorded in the first place.

Errors of omission occur when there is a complete or partial omission of a transaction in the accounts. This can happen when the accountant forgets to record the transaction in either debit or credit side, which leads to partial omission and on both debit and credit side, which is complete omission.

The errors that do not affect the trial balance are as follows: Errors of omission. Errors of commission. Errors of principle.

For example, goods for ` 600 have been purchased from Anil. If, it has been correctly entered in the Purchase Book or purchase account, but while posting to Anil's account, in credit side (correct side) the amount posted is ` 60 instead of ` 600, the Trial Balance will not tally.

Errors in the Trial Balance can be corrected by making a single entry into the relevant account. This will bring the Trial Balance back into agreement. However, if a Trial Balance is out of agreement at the end of a period, it is common to open a suspense account and enter the difference into this account.

An error of original entry is when the wrong amount is posted to an account. The error posted for the wrong amount would also be reflected in any of the other accounts related to the transaction.

Compensating error

It's because a compensating error happens when two entries offset each other, making the books appear balanced. For example, if you mistakenly added $500 to your expenses and you also recorded the same amount in your revenue, your balance sheet will look equal even if the items are wrong.

Omitting an account balance in the Trial Balance. Showing the account balances in the wrong column or with the wrong amount in the Trial Balance. Wrong calculation of the account balance. Error in posting a journal entry to the ledger.

Which of the following would cause the trial balance to be wrong? ›

A trial balance can be out of balance if a transaction is recorded twice, only the debit of a transaction is recorded, a transaction is not recorded, or a transaction is posted to the wrong account.

(ii) Amount Spent on Repair of Machinery Debited to Machinery Account: In this transaction, amount of repair is revenue expenditure and should be debited to repair account which has been treated as capital expenditure and wrongly debited to the machinery account. This error also violated the accounting principle.

Errors of commission is one of the types of errors in accounting or in other words, accounting errors. It is caused when an accountant or the bookkeeper makes a debit or credit correctly in the account but in the wrong subsidiary books.

An error of omission occurs when an entry has not been recorded although a transaction has occurred during that period. In other words, errors of omission take place when an accountant forgets to record a particular transaction in the record books.

An error of omission happens when you forget to enter a transaction in the books. You may forget to enter an invoice you've paid or the sale of a service. For example, a copywriter buys a new business laptop but forgets to enter the purchase in the books.

The error of partial omission and error of commission affect the agreement of trial balance. Examples of such errors are as follows: Entered in the journal but posted to one account and omitted to be posted to the other. Posting an amount to the wrong side of a ledger account.

Hence, trial balance is prepared for locating the clerical error.

(a) One-Sided Error

This kind of error is known as 'One-Sided' because it affects only one account of the books of accounts. There are various reasons which arise such kind of error. Reasons include posting on the wrong side of the account, duplication of the same amount in an account, etc.

Error of compensation.

If two transactions can be compensated with each other in terms of their amount and respective head of accounts, then it will not affect the trial balance.