Errors that do and do not affect the trial balance, journal entries to correct them, the suspense account, and the effect of corrections on profit.
Two families of error
| Errors that do NOT affect the trial balance | Errors that DO affect the trial balance |
|---|---|
| Omission, commission, principle | One-sided entry |
| Complete reversal | Different figures on each side |
| Original entry (transposition) | Posting to the wrong side |
| Compensating errors | Arithmetic / addition errors |
Errors in the first column leave the trial balance balanced; those in the second make it disagree, so the difference is parked in a suspense account.
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