Double Entry Errors

Errors Not
Effecting
Trail Balance
1. Error of Commission
Example 1
Business paid insurance for the year of $10,000 by cash which was debited in Rent account in
error.

Should be recorded Was Recorded

Dr. Insurance Exp A/C 10,000 Dr. Rent Exp A/C 10,000
Cr. Cash A/C 10,000 Cr. Cash A/C 10,000
Correction
Dr. Insurance Exp A/C 10,000
Cr. Rent Exp A/C 10,000
1. Error Of Commission

Example 2
Business sold goods to a credit customer Mr. A of $5,500 was wrongly debited in another
customer Mr. B Account.

Should be recorded Was Recorded

Dr. Mr. A A/C 5,500 Dr. Mr. B A/C 5,500

Cr. Sales A/C 5,500 Cr. Sales A/C 5,500
 Correction

Dr. Mr.A A/C 5,500

Cr. Mr. B A/C 5,500
2. Error Of Principle

Example
Business paid repairs for building of $6,000 was incorrectly debited in Building Asset Account.

Should be recorded Was Recorded

Dr. Repairs Exp A/C 6,000 Dr. Building A/C 6,000

Cr. Cash A/C 6,000 Cr. Cash A/C 6,000
 Correction

Dr. Repairs Exp A/C 6,000

Cr. Building A/C 6,000
3. Error of Complete Omission

Example 1
Sales made by business on cash of $4,500 was totally overlooked from accounting records.

Should be Recorded Was Recorded

Dr. Cash A/C 4,500 Nil

Cr. Sales A/C 4,500
 Correction

Dr. Cash A/C 4,500

Cr. Sales A/C 4,500
3. Error of Complete Omission

Example 2
Business Allowed discount of it’s customers of $550 was not recorded in the accounting system
at all.

Should be recorded Was Recorded

Dr. Discount Allowed A/C 550
Cr. Debtors A/C 550 Nil
 Correction

Dr. Discount Allowed A/C 550

Cr. Debtors A/C 550
4. Error of Original Entry

Example 1
Business charged depreciation for the year of $5,300 in the financial statements instead of
correct amount of $6,300.

Should be Recorded Was Recorded

Dr. Depreciation Exp A/C 6,300 Dr. Depreciation Exp A/C 5,300
Cr. Accumulated Dep A/C 6,300 Cr. Accumulated Dep A/C 5,300
 Correction

Dr. Depreciation Exp A/C 1,000

Cr. Accumulated Dep A/C 1,000
 4. Error of Original Entry

Example 2
Business paid carriage paid on the delivery of goods of $4,500 was debited in carriage inwards account and
cash account as $6,500.

Should be Recorded Was Recorded

Dr. Carriage Inwards A/C 4,500 Dr. Carriage Inwards A/C 6,500
Cr. Cash A/C 4,500 Cr. Cash A/C 6,500
 Correction

Dr. Cash A/C 2,000

Cr. Carriage Inwards A/C 2,000
5. Error of Complete Reversal

Example 1
Business adjust for electricity accrual at the end of year of 1,500 by Debiting Accrued Electricity
account and Crediting Electricity Expense Account.

Should be Recorded Was Recorded

Dr. Electricity Exp A/C 1,500 Dr. Accrued Electricity A/C 1,500
Cr. Accrued Electricity A/C 1,500 Cr. Electricity Exp A/C 1,500
 Correction

Dr. Electricity Exp A/C 3,000

Cr. Accrued Electricity A/C 3,000
5. Complete Reversal

Example 2
Business made sales on credit for 2,500 was debited to sales account and credited to debtors
account in error.

Should be Recorded Was recorded

Dr. Debtors A/C 2,500 Dr. Sales A/C 2,500
Cr. Sales A/C 2,500 Cr. Debtors A/C 2,500
 Correction

Dr. Debtors A/C 5,000

Cr. Sales A/C 5,000
6. Error of Compensation

Example
Error 1
Business paid Carriage cost on delivery of goods to customers of $1,500 was recorded in carriage
outwards account as $2,000.

Should be Recorded Was Recorded

Dr. Carriage Outwards A/C 1,500 Dr. Carriage Outwards A/C 2,000
Cr. Cash A/C 1,500 Cr. Cash A/C 1,500
6. Error of Compensation

Example
Error 2
Business paid salaries and wages of $5,000 by cash was recorded in salaries and wages expense
account as $4,500.

Should be Recorded Was Recorded

Dr. Salaries & Wages A/C 5,000 Dr. Salaries & Wages A/C 4,500
Cr. Cash A/C 5,000 Cr. Cash A/C 5,000
 Correction

Dr. Salaries & Wages A/C 500

Cr. Carriage Outwards A/C 500
 Errors effecting
Trial Balance
 1. Partial Omission
Example 1
Business write off a debt as bad of $1,500 but only posted the
transaction in Debtors Account.

Should Be Recorded Was Recorded

Dr. Bad Debt Exp A/C 1,500
Cr. Debtors A/C 1,500 Cr. Debtors A/C 1,500
 Correction

Dr. Bad Debt A/C 1,500

Cr. Suspense A/C 1,500
 1. Partial Omission
Example 2
The drawings of goods by the owner of the business of $2,000 was only
recorded in drawings account.

Should Be Recorded Was Recorded

Dr. Drawings A/C 2,000 Dr. Drawings A/C 2,000
Cr. Purchases A/C 2,000
 Correction

Dr. Suspense A/C 2,000

Cr. Purchases A/C 2,000
 2. Both Accounts Recorded with Debit or Credit
Example 1
Sales return of $500 was debited in both sales return and cash account in error.

Should Be Recorded Was Recorded

Dr. Sales Return A/c 500 Dr. Sales Return A/C 500
Cr. Cash A/C 500 Dr. Cash A/C 500
 Correction

Dr. Suspense A/C 1,000

Cr. Cash A/C 1,000
2. Both Accounts Recorded with Debit or Credit

Example 2
The carriage cost paid on sales of goods of $600 was credited in both the carriage
outwards and cash account in error.

Should Be Recorded Was Recorded

Dr. Carriage Outwards A/C 600 Cr. Carriage Outwards A/C 600
Cr. Cash A/C 600 Cr. Cash A/C 600
 Correction

Dr. Carriage Outwards A/C 1,200

Cr. Suspense A/C 1,200
 3. Debit and Credit Recorded With Different
Amount
Example 1
Purchases made on credit of $1,500 was recorded in purchases account as $1,000

Should Be Recorded Was Recorded

Dr. Purchases A/C 1,500 Dr. Purchases A/C 1,000
Cr. Creditors A/C 1,500 Cr. Creditors A/C 1,500
 Correction

Dr. Purchases A/C 500

Cr. Suspense A/C 500
 3. Debit and Credit Recorded With Different
Amount
Example 2
Owner Invest Capital of 10,000 but $13,000 was credited in capital account.

Should Be Recorded Was Recorded

Dr. Cash A/C 10,000 Dr. Cash A/C 10,000

Cr. Capital A/C 10,000 Cr. Capital A/C 13,000
 Correction

Cr. Suspense A/C 3,000

Dr. Capital A/C 3,000