N/O Levels Principles of Accounts\r
\r
Chapter 14 - Correction of Errors\r
\r
Introduction (What is this chapter about?)\r
There are definitely errors in the accounts if the Trial Balance is not balanced. However, a balanced Trial Balance does not mean that there are NO ERRORS. There are accounting errors that could have happened and yet the Trial Balance is balanced.\r
\r
There are 6 types of errors not revealed by a Trial Balance. The 6 types of errors are described in this video.\r
\r
6 Errors not revealed by a Trial Balance \r
1) Error of Omission\r
2) Error of Complete Reversal\r
3) Error of Original Entry\r
4) Compensating Error\r
5) Error of Commission\r
6) Error of Principle