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Oga Ade, good day. Please, help me to send this to the appropriate place.

Note: The students are to leave four (4) pages for the concluding part of BRS which will be treated later.

Subject: Financial Accounting.
Class: S. S. 1
Topic: ERRORS AND CORRECTIONS OF ERRORS.

ERRORS: Errors can be defined as mistakes made in the preparation of accounts.
Errors can be categorized into two, namely:

(1) Errors that do not affect the totals of the trial balance.

(2) Errors that will affect the totals of the trial balance.

(1) Errors that do not affect the totals of the trial balance.
The errors are as follows:

(i) Error of omission: This is an error whereby a transaction is completely omitted from the books of accounts. Under the error, the transaction is completely omitted on the credit or debit sides of the cash book. e. g the payment of water rates of #5,600 cash has been omitted from the books.
This error is corrected in the journal by debiting rates with #5,600 and crediting cash with the same amount.
Narration: Correction of omission of rates.

(ii) Error of commission: This error occurs when a correct amount of money is entered in a wrong person’s account
This error will only affect the names of individuals and not the figures in the trial balance. e. g the sales of goods worth #3,000 to Wale was entered in Wole account.
This error is corrected in the journal by debiting Wale with #3,000 and crediting Wole with the same amount.
Narration: Sales entered in wrong account now corrected.

(III) Compensating error: This error occurs when errors of the same amount are posted to the two sides of the ledgers therefore they cancelled out each other.
The two sides may be overcast or undercast by the same amount. e. g sales account is undercast by #200 as also is salaries account. This error will definitely cancel out each other.
The error is corrected by debiting sales with #200 and crediting salaries with the same amount.
Narration: Correction of sales and salaries received undercast.

(iv) Error of original entry: This error occurs when a wrong amount is recorded on the debit and credit sides. Since wrong amount is entered on both sides, the trial balance will still be alright.
The difference of the amount must be posted to the accounts e. g sales of goods worth #5,105 from Dele was entered in the books as #5,015.
Correction: The difference between the two figures (#5,105 – #5,015 = #90) must be posted to the accounts.
The error is corrected in the journal by debiting sales with #90 and crediting Dele with the same amount.
Narration: Correction of undercast of sales.

(v) Errors of prinples: This is an error whereby transactions are entered in a wrong class of accounts. A real account item is entered in a nominal account or vice – versa. e. g Motor Van bought was entered in Motor expenses account.
Office furniture worth #790 was purchased and entered in the Office expenses account.
The error is corrected in the journal by debiting Office furniture with #790 and crediting Office expenses with the same amount.
Narration: Purchases of furniture entered in office expenses now corrected.

(vi) Complete reversal of entry: This error occurs when the double entry for a transaction is reversed, resulting in a situation whereby the account that ought to be debited is credited and the account to be credited is debited.
In this type of error, the figure will be corrected by multiplying it by two. The amount must cancel the error and the actual figures arrived at. e. g the receipt of cheque of #5,000 from Latin was debited as #2,500 to Latin’s account and credited to bank account.
The error is corrected in the journal by debiting Latin with #5,000 and crediting Bank with the same amount.
Narration: Correction of complete reversal of entry.