In accounting there are bound to be errors. Some of these errors can be detected by the trial balance while others can not be detected.

What errors can be detected?

Casting error – Sum has been calculated wrong

What errors can not be detected?

There are certain errors that are not picked up by the trial balance. These include:

Error of omission – When a business has forgotten a transaction completely

Error of commission – When an amount has been put in the wrong persons account

Complete reversal of entries – Debit and credit has been put on the wrong side

Error of principle – When an amount has been entered in the wrong class of account

Error of original entry – Wrong original figure entered into accounts

Error of transition – Digits of amount have been switched around


To solve the errors that are not detected we can use a suspense account

How to use a suspense account?

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