These errors are most common. These errors can be avoided with little care. These mistakes are committed because of ignorance, lack of proper accounting knowledge and carelessness of accounting staff. Few Example of errors of commissions are as under:-
- If the wrong amount is entered in day book at the time of entry. For example a purchase of Rs.12450/= entered in purchase day book as Rs.12540/=.
- If the transaction is recorded in wrong day book. For example a purchase bill entered in Sale day book. Journal voucher relating the purchase of machinery entered into purchase day book.
- If wrong totaling of day books or ledger accounts are done. At the end of the day the totaling and balancing of cash book and bank book are done. Normally, the balance of cash book is verified with the physical balance of cash and bank balance can be verified with the balance of bank statement. There is no yardstick to verify the totals of other day books. So there may be possibility of wrong totaling of these day books. The processing of the totaling the transactions is called casting. If there is any mistake in totaling i.e. under casting or overcasting of day books then it will affect the concerned account like purchase account, sale account etc.
- When the total of one page is carried out to other page then errors of carry forward may occurs.
- Some time the errors may occur while posting the amount in ledger. These errors relate to the posting of the wrong amount in correct account or posting correct amount in wrong ledger or wrong amount in wrong ledger.
- The errors also may occurs while balancing the ledger accounts.
- Learn Accounting, Free Accounting Tips
- General Accounting Terms
- General Tips Relating to Indian Income Tax Act
- Free Tally Learning
- General Tips Relating to Sales Tax-VAT