Question

Which of the following does not affect the agreement of trial balance?

• A. Errors of principle
• B. Complete omission in subsidiary books
• C. Compensating errors
• D. All the three

Answer 1

The correct option is D All the three

Option D is correct one.

Different types of errors which don’t affect the trial balance are :-

Error of omission - Where in the full transaction is omitted from the books of accounts.

Error of commission - Where we have entered the correct amounts but in wrong person’s account.

Error of principle - This type of error takes place when an item is entered in wrong head or class of accounts.

Error of compensation - Are that errors which cancel the effects of each other.

Error of complete reversal of entries - These errors occur when we debit and credit the two or more aspects of a transaction wrongly using correct figures or amounts.