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Accounting · Verification of accounting records

Correction of errors

CIE 04521 min read

Errors not shown by the trial balance

ErrorMeaning
CommissionEntry made in the wrong account, but the same class of account.
PrincipleEntry made in the wrong account (wrong class of account).
OmissionA transaction is overlooked and not recorded at all.
Original entryA mistake is made in the amount of both entries.
Complete reversalThe debit and credit entries are reversed.
CompensatingOne error is cancelled out by another error of equal value.

Suspense account

Suspense account — a temporary account used to balance the trial balance until the errors are found and corrected.

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