Error of commission
What is an error of commission?
An error of commission is an entry for the right amount, on the right side, in the wrong account of the same kind.
The usual cause is two people with similar names.
Total debits still equal total credits, so the trial balance agrees.
Example
A customer, A Shaw, pays £325.00. Bank is debited, which is right, but the credit goes to the account of another customer, A Shah. To correct it, A Shah is debited with £325.00 and A Shaw is credited with £325.00.
Why it matters
The totals are right, but two accounts are wrong. Here one customer's account still shows money owed that has been paid.
Practise it
Module, 5 rooms, PremiumErrors the trial balance hides
See the first roomPosted to the wrong person's account
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].