Definition

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:  Cite

More from this Section

  • Operational Audit
    Operational Audit is an extension of internal auditing to all the operations and the activities ...
  • Internal check
    Internal check is a method of organizing the accounts system of a business concern or ...
  • Registered and bearer bonds
    Bonds issued in the name of the owner are registered bonds. Interest payments on registered ...
  • Manufacturing
    Manufacturing consists of activities and process that convert raw materials into finished ...
  • Sales discount
    A sales discount is a reduction or cash discount that is given by a seller to the customer ...