1. Errors which do not effect the agreement of the trial balance.
Main object of preparing a trial balance is to check the accuracy of the accounts.the equality of debits and credits of the trial balance does not mean that there are absolutely no errors in the books of accounts.there may be a number of error which may remain undetected in spite of the agreement of a trial balance. As such it is true to say that ' trial balance is not a conclusive proof of the accuracy of the books of account '
1. Errors of omission.
2.Error of commission.
3.Compensating Error.
4. Error of principal.
A. When a capital expenditure is treated as a revenue expenditure.
B. When revenue expenditure is treated as a capital expenditure.
Main object of preparing a trial balance is to check the accuracy of the accounts.the equality of debits and credits of the trial balance does not mean that there are absolutely no errors in the books of accounts.there may be a number of error which may remain undetected in spite of the agreement of a trial balance. As such it is true to say that ' trial balance is not a conclusive proof of the accuracy of the books of account '
2.Error of commission.
3.Compensating Error.
4. Error of principal.
A. When a capital expenditure is treated as a revenue expenditure.
B. When revenue expenditure is treated as a capital expenditure.
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