Error in Accounting

An accounting error is a non-fraudulent discrepancy in financial documentation.

The term is used in financial reporting. Types of accounting errors include: Error
of omission -- a transaction that is not recorded. ... One example of an error of
commission is subtracting a figure that should have been added.

Types of accounting error

Two side error

One side error

Two side error

Two-sided errors are those errors which do not affect the agreement of the trial
balance. These errors are occur in two or more accounts. Such errors are rectified
by passing journal entries. Errors of complete omission, errors of principle and
compensatory errors are examples of two sided-errors.

One side error

One-sided errors are those errors which affect the agreement of the trial balance.
These errors affect only one account and only one side i.e. debit or the credit side
of the account. Errors of partial omission, recording transactions with wrong
casting and wrong posting are examples of one-sided errors
Depreciation
Depreciation is an accounting method of allocating the cost of a tangible
asset over its useful life and is used to account for declines in value.
Businesses depreciatelong-term assets for both tax and accounting
purposes

Salvage Value
Salvage value is the estimated resale value of an asset at the end of its useful life.
It is subtracted from the cost of a fixed asset to determine the amount of the
asset cost that will be depreciated. Thus, salvage value is used as a component of
the depreciation calculation.

Straight line method

Straight line depreciation is the default methodused to recognize the
carrying amount of a fixed asset evenly over its useful life.
 ASSIGNMENT SUBMITTED TO

SIR ALI SAJJAD

NAME AFAQ YOUSAF
CLASS BBA-2C
RoLL NO BBHM-F18-149
Subject FINANCIAL ACCOUNTING
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