Such errors arise when an entry in a book of original entry has been made twice and has also been posted twice. These are called errors of duplication.
“Error of duplication is when an accounting entry is duplicated, meaning it's debited or credited twice for the same entry.” For instance, an expense is debited twice for an identical amount will be an error of this type.
Errors of duplication occur due to a transaction’s double recording or double posting from subsidiary books or journals to ledger. For instance, the transaction-goods sold to Ann is wrongly recorded twice or more in the book of sales or posted wrongly twice or more in Ann’s account, then it can create this type of an error.
These types of errors are so annoying and can also make serious problems. Errors cause bad data which can cause expensive mistakes. These errors can occur both in manual and automated business set-ups. Project and customer data are often entered twice or more times into inventory, accounting, customer relationship management (CRM), project management, and other types of software programs that can be used all over the office. All businesses should be aware of errors of duplication.
More from this Section
- Cash payments journal
Cash payments (cash disbursements) journal refers to a special journal where companies ...
- Contra-revenue account
Contra-revenue account is an account that is offset against a revenue account on the income ...
- Three-column of account
Three-column of account is a form with columns for debit, credit, and balance amounts ...
- Period costs
Period costs are costs that are matched with the revenue of a specific time period rather ...
- Other receivables
Other receivables include various forms of nontrade receivables which do not generally ...