QS Study

Errors of Commission

Accountants take highest concern to reduce the errors in recording the transactions, but in the procedure of accounting, errors happen usually because the accountants consign errors in recording the transactions by posting one transaction in the other account are called as errors of commission. This error happens due to wrong recording, wrong posting, wrong casting, wrong balancing, wrong carrying forward etc. Errors of commission may be classified as follows:

Error of Recording: This error arises when a transaction is wrongly recorded in the books of original entry. For example, Goods of $ 5,000, purchased on credit from Mr.XYZ, is recorded in the book for $ 5,500. This error does not affect the trial balance.

Error of Posting: This error arises when information recorded in the books of original entry are wrongly entered in the ledger. Error of posting may be

  • Right amount in the right side of wrong account.
  • Right amount in the wrong side of correct account
  • Wrong amount in the right side of correct account
  • Wrong amount in the wrong side of correct account
  • Wrong amount in the wrong side of wrong account
  • Wrong amount in the right side of wrong account, etc.

This error may or may not affect the trial balance.

Error of Casting (Totaling): This error arises when a mistake is committed while totaling the subsidiary book. For example, instead of $12,000 it may be wrongly totaled as $13,000. This is called overcastting. If it is wrongly totaled as $ 11,000, it is called under casting.

Error of Carrying Forward:  This error arises when a mistake is committed in carrying forward a total of one page to the next page. For example, Total of purchase book in page 282 of the ledger $ 10,686, while carrying forward the balance to the next page it was recorded as $ 10,866.

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