ERROR IN

RECORDING &
POSTING
FABM 2
 Possible Errors in Journalizing & Posting

1. Failure to record transaction

2. A transaction is journalized but not posted
3. Some erroneous amount is debited and credited
for an entry
4. A transaction is recorded but posted twiced
5. An amount is posted to correct side but to the
wrong account
6. Wrong account title in recording business
transaction
Following are errors committed:
Determine the effect of errors in the
Trial balance and each account
affected, if it is
• overstated
• understated
• will not balance
• will balance
 The balance in the accounts
payable ledger account of P62,700
was transferred as P72,600.
Trial balance - will not balance
The utilities expense account has a
double entry together with Cash of
P1,800
Cash - understated
Utilities Expense - overstated
Trial Balance - will balance
A debit posting to accounts receivable
and credit service income in the
amount of P52,000 should have been
P5,200.
Accts. Receivable - overstated
Service Income - overstated
Trial Balance - will balance
 A debit posting to accounts
payable of P46,000 was missing

Accounts Payable - overstated

Trial Balance - will not balance
A credit posting to revenues in the
amount of P7,600 was missing

Revenues - understated
Trial Balance - will not balance
 A credit of P31,000 was posted to
accounts payable instead of
Accounts Receivable.

Accounts Payable - overstated

Accounts Receivable - overstated
Trial Balance - will not balance
 Dasmarinas Duplicators
TRIAL BALANCE
June 30, 2010
ACCOUNT TITLE DEBIT CREDIT
Cash 36,600
Accounts Receivable 189,600
Supplies 70,800
Equipment 560,000
Accounts Payable 72,600
Pascual, Capital 513,000
Pascual, Drawing 50,000
Income/Revenues 371,600
Salaries Expense 35,000
Rent Expense 10,000
Utilities 6,400
TOTAL 906,600 1, 007,200
Additional Information: Following are errors committed

1. The balance in the accounts payable ledger account

of 62,700 was transferred as 72,600
2. The utilities expense account balance was
overstated by 1,800
3. A debit posting to account receivable in the amount
of 52,000 should have been 5,200
5. A debit posting to accounts payable of 46,000 was
missing
6. An income of 9,400 was missing
6. A credit of 31,000 was posted to accounts payable
rather than 30,100
 Adjustment/solution to correct the errors

A. First procedure
1. Subtract 9,900 to accounts payable
2. Subtract 1,800 to utilities expense
3. Subtract 46,800 to accounts receivable
4. Subtract 46,000 to accounts payable
5. Add 9,400 to revenue
6. Subtract 900 to accounts payable
7. Transfer 50,000 drawing to debit side from the
credit side
B. Compute for the corrected amount for
the account affected
* accounts payable 72,600 - 9,900 -
46,000 - 900 = 15,800
* utilities expense 6,400 - 1,800 = 4,600
* accounts receivable 189,600 - 46,800 =
142,800
* revenues /income 371,600 + 9,400 =
381,000
Problem: The trial balance by F. Ignacio Company as of
September 30 was not balance. In searching for the error,
an employee discover that a transaction for the purchase
of a typewriter on credit for 6,100 has been recorded by a
debit of 6,100 to the office equipment account and a debit
of 6,100 to accounts payable
a. was the office equipment account overstated,
understated or correctly stated in the trial balance
b. was the total debit column of the trial balance
overstated, understated or correctly stated
c. was the account payable account overstated, understated
or correctly stated
d. was the total of the credit column of the trial balance
overstated, understated or correctly stated
 Account Titles Debit Credit
Mayon, Drawing P 18,000  
Accounts Payable   P 88,000
Land 300,000  
Prepaid Expense 18,000  
Rent Expense 3,000  
Taxes Expense 4,000  
Utility Expense 2,000  
Interest Income   3,600
Accounts Receivable 264,000  
Mortgage Payable   450,000
Furniture and Fixtures 82,000  
Notes Receivable 60,000  
Building 1,350,000  
Mayon, Capital   700,000
Supplies 15,000  
Service Income   l,050,000
Salaries Expense 195,000  
Cash 84,000  
Accumulated Depreciation F/F   15,000
Advertising Expense 42,000  
Rent Income   25,000
Interest Expense   13,500
Accumulated Depreciation-Bldg.   75,000
TOTAL P2,436,000 P2,419,100
The following errors were encountered while
posting:
Make necessary corrections on the following items
by stating ADD or SUBTRACT to the accounts
affected:

1. A credit to Accounts payable P10,000 was posted

on the debit side.
2. Prepaid insurance for P3,000 was not debited
3. Taxes Expense of P32,000 was debited to Capital
4. A withdrawal of P32,000 was debited to Capital
5. A credit to Accounts Receivable of P26,900 was
overlooked
Thank you