The
Definition Of

Error of commission

       When a transaction has been recorded but has been wrongly entered in the books of original entry or in the ledger, error of commission is said to have been made, e.g., incorrect entries in the original records, wrong castings, calculations, extensions, carry forwards etc. Some of such entries will be detected by the non-agreement of the trail balance.

On the other hand, if a mistake has been committed in the invoice for the sale of goods, the error will not be detected as the mistake will appear both in the original books as well as in the ledger.

Share it:

More from this Section

  • Labor quantity variance
    Labor quantity variance is the difference between the actual hours times the standard rate and standard hours times the standard rate for labor.
  • Manufacturing Overhead Costs
    A company has many types of overhead costs. It may recognize these costs daily, as in the case of machinery repairs and the use of indirect materials and indirect labor.
  • Declining-balance
    Declining-balance method is a depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual...
  • Indirect method
    Indirect method is a method of preparing a statement of cash flows in which net income is adjusted for items that do not affect cash to determine...
  • Current liability
    A current liability is a debt that a company can reasonably expect to pay (1) from existing current assets or through the creation of other current liabilities...
  • Record date
    At the record date, the company determines ownership of the outstanding shares for dividend purposes. The records maintained by the corporation supply...
  • Contra asset account
    Accumulated Depreciation- Office Equipment is a contra asset account which is an account offset against an asset account on the balance sheet.