ACC- SECTION 7B
SIX ERRORS [ERROS NOT AFFECTING THE TRIAL BALANCE]
Uses of the General Journal

The general journal records transactions that are not recorded in any of the other
subsidiary books e.g. (sales book, sale returns book, purchases book, purchase
returns book, cash book, petty cash book). The uses of the general journal include:
a)
b)
c)
d)
e)
f)
Correction of errors
Purchas/ sale of fixed assets on credit
Writing off bad debts
To record provision for bad debts
To record provision for depreciation
Opening entries
NB: The source document for the general journal is an invoice.
Errors Not Affecting The Trial Balance
a) Error of Omission
 Where a transaction has been completely left out. E.g. sold goods to Thato, this
information has not been recorded in the Sales account and Thato’s account.
b) Error of Commission

Where the correct amount is entered in the incorrect personal account. E.g. sold
goods to K. Green has been entered into C. Green’s Account
OR

Where an error occurs in the same class but incorrect account e. g. sales
entered in a commission received account
c) Error of Principle
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
Where the error occurs in the wrong/incorrect class of account. E.g. bought
motor van [asset a/c] entered in a motor expenses account [expense a/c]
d) Error of Original Entry

Where the original figure is incorrect but double entry is still carried out. E.g.
sold goods to Britany $130 entered into both accounts as $150.
e) Complete Reversal

Where the correct amounts are used but each item is shown on the wrong side.
E.g. paid a cheque to Olive $100 was entered as Dr Bank and Cr Olive.

NB – with complete reversal - you have to double to the amount to correct
the error because the figure went on the incorrect side.
f) Compensating Errors

Where errors cancel each other out. E.g. if the sales was added up $10 too much
and purchases was also added up $10 too much.
(1) Show the journal entries necessary to correct the following errors. [Narrations
required]
a) (i)
(ii)
A sale of goods $ 678 to J. Harris had been entered in J. Hart’s account
Rent expense of $500 was debited to motor expense
b) The purchase of a machine on credit from L. Pyle for $4 390 had been completely
omitted from our books.
c) The purchase of a motor van $3 800 had been entered in error in the motor expense
account.
d) A sale of $221 to E. Fitzwilliams had been entered in the books as both debit and credit
as $212.
e) Receipt in cheque $100 from P Palmer was entered in error as DR Palmer and CR
Bank.
Question 1- Key
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Journal
Date
Details
Foli
o
DR $
CR $
(2) Show the journal entries needed to correct the following errors. [Narrations required]
a) Purchase of $600 on credit from J. John had been entered in R. John’s account.
b) A cheque for 340 paid for rent had been entered in the cash column instead of the bank
column.
c) Sale of goods on credit to S. Brown $500 was omitted from both accounts.
d) Purchase of goods on credit from Jacob $87 was entered in both accounts in error as $78.
e) A payment of $240 for office cleaning had been debited office equipment.
(3) Show the journal entries necessary to correct the following errors. [Narrations
required]
a) The sale of unwanted fixtures and fittings for $1000 had been credited to the sales
account.
b) The motor van repairs $420, had been debited to the building repairs account.
c) A sale of goods to Tia-kay $150 had been entered two places in error as $170.
d) Purchase of goods from Zoe $400 is entered on the credit side of the purchases and the
debit side of Zoe’s account.
e) The purchase of a new computer $2000 on credit from Jack had been omitted from the
books.
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( 4). The following errors had been found in the accounts at the yearend 31 March 2008.
Show the journal entries necessary to correct the following errors.[ Narrations
required]
a) A sale of goods to Kirkham & Co for $760 had been entered in both the sales account and
Kirkham & Co as $670.
b) A receipt of $400 from Paul Palmer had been entered in the cash book correctly but was
posted to the accounts of Brian Palmer.
c) The purchase of a new computer costing $5000 had posted in error to the stationary
account.
d) A receipt of $690 in cheque from Palmer has been omitted from both books.
e) Cash paid to Hanna $99 was entered on the debit side of the cash book and the credit side
of Hanna account.
(5) Show the journal entries necessary to correct the following errors.[ Narrations
required]
a) Purchases of $699 on credit from K Wong had been entered in H. Wood’s account
b) A cheque for advertisements $600 had been entered in the cash column of the cash book
instead of in the bank column.
c) Purchase of a new computer $500 on credit from I. King had been entered as Dr King and
Cr computer.
d) Purchase of furniture on credit from K Isaacs $89 entered in two places in error as $99.
e) A purchase invoice from Belfield Marketing agency for services rendered amounting to
$683 had been accidently thrown away and not entered in the accounting records.
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