General errors in accounting

Question

Write down the general errors in accounting? To locate errors what steps will you follow?

Answer 1

The general errors in accounting which are illustrated below:

i) Compensating Error
ii) Errors of Principle
iii) Errors of Commission
iv) Errors of Omission

To locate the errors follow the below steps:

i) Ensure the total of all the cash books, subsidiary book and trial balance.
ii) Check that all the opening balances are correctly brought forward in the present year’s books of account.
iii) Check that all the ledger accounts are properly balanced and the balances of all the ledger accounts have been shown in the Trial Balance.
iv) The difference in trial balance must be half to locate these errors.
v) When the difference in the trial balance is divisible by nine devoid of any reminder, it might point to the transplacement or transposition of the amounts.
v) The trial balance of the present year can be compared through the trial balance of the preceding year to locate specific highlighting error.