Accounting Principle

A suspense account is an account in the general ledger in which amounts are provisionally recorded. When it is hard to find the faults before…

Steps to find the Errors in Trial Balance: If the trial balance does not tally, it means there are various errors in the books of…

Errors of Omission This error happens when a transaction is totally or partly omitted to be recorded in the books of accounts. The accountant’s major…

Errors of Commission Accountants take highest concern to reduce the errors in recording the transactions, but in the procedure of accounting, errors happen usually because…

Compensating Errors The errors occurring from surplus debits or under debits of accounts being neutralized by the surplus credits or under credits to the similar…

Errors of Principle in accounting, happens when one or both of the entries are made in the wrong class or category of account. Transactions are…

Errors in Accounting An accounting error is a non-fraudulent divergence in financial documentation. The term is used in financial reporting. The basic principle of the…

Sundry Debtors Sundry can signify various, miscellaneous, or diverse. Sundry debtors may refer to a company’s clients who infrequently make purchases on credit and the…

Sundry Creditors Sundry can signify various, miscellaneous, or diverse. Sundry debtors may refer to a company’s clients who infrequently make purchases on credit and the…

Importance of Trial Balance The reason of a trial balance is to establish that the value of all the debit value balances equivalent the overall…