Errors affecting the Trial Balance

In our previous post, we talked about error not affecting the trial balance, and today we are going to discuss those errors which inevitably has an effect on the trial balance, those errors are:

a) Omission to post to the ledger from the subsidiary book.

b) Posting the wrong amount in the ledger.

c) Posting an amount to the wrong side.

d) Wrong casting of the subsidiary book.

e) Posting wrong amount lo the wrong side.

f) Posting a wrong amount to a wrong account

g) Posting a wrong amount to the wrong side of a wrong account.

Omission of posting from a subsidiary book

Goods returned to Onome worth N300 was entered in the Purchases Returns Book but omitted in Onome's A/c. Onome's A/c has not been debited. Therefore his A/c should be debited with N300.

Posting the wrong amount in the ledger

Credit sales to Joe for N 120 was correctly entered in the sales book but posted to Joe's A/c as N 102. Joe's A/ c is debited short by N18 (120-120). Therefore joe’s A/c should be debited with N 18.

Posting an amount to the wrong side

A credit purchase from Uzor worth N500 was correctly entered in the purchases book but wrongly debited to Uzor’s A/c.  To cancel this debit of N 500 a credit of N500 must be given. Another credit of N 500 must be given to incorporate the correct entry. Therefore a total credit of N 1,000 has to be given.

Wrong casting of the subsidiary book

Sales book has been totaled as N4000 the correct being N 4400. Sales A/c has short credit of N 400. Therefore credit sales A/c by N400.

Posting wrong amount to wrong side

Sold goods to Ken for N 136 entered in the sales book correctly but credited to Ken’s a/c for N 163.

Ken's A/c has to be debited with N 299. Ken’s A/c has been credited wrongly for N 163. To cancel this credit a debit of N163 is given. Further a debit of N 136 has to be given to accommodate the correct entry. Therefore a total debit of N 299 (163 + 136) has to be given.

Posting a wrong amount to the wrong account

Credit purchases from Osondu for N 155 was posted to the credit A/c of  Osondu for N 165. Debit  Osondu 's A/c with N 165. Credit Osondu 's  A/c with N 155.

Osondu 's A/c has been wrongly credited therefore it should be debited to cancel the credit. Osondu 's A/c has not been credited. So credit his A/c now with the correct amount N 155.

Posting the wrong amount to the wrong side of a wrong account

A credit sale to Wora for N 153 was credited to Vera's A/c for N 135. Debit Vera's A/c with N 135. and

Credit Wora's A/c with N153. Vera's A/c has been credited wrongly, so his A/c is debited to cancel the wrong credit. Wora's A/c should have been debited in the first place.

Therefore, his A/c is now debited with N153, being the correct amount.

Example

Correct the following entries.

a) Sale or goods N1200 to Mr. Kumar has been entered in the sales book as N 1100.

b) Machinery purchased for N 11500 from XYZ Co. Ltd has been entered in the Purchases book.

c) Payment of the proprietor's personal expenses N 450 has been debited to the General Expenses A/c.

d) Sale of old typewriter N 275 has been passed through the sales book.

                           Journal Entries

Particulars	DR.	CR.
Kumar's A/c To Sales A/c (Rectifying entry passed for short credit-sales A/c and short debit to Kumar's A/c)	100	100
Plant & Machinery A/c To Purchases A/c 1 (Rectifying entry passed to correct machinery purchased charged to Purchases A/c )	11,500	11,500
Drawing A/c To General Expense A/c (Rectifying entry passed to correct drawings charged to Gen. Exp. A/c)	450	450
Sales A/c To Office Equipment A/c (Rectifying entry passed to correct sale of old typewriter erroneously credited to Sales A/c instead of Office Equipment A/c)	275	275