Trail balance error | error of commission | class 11 accounting

Welcome to Commerce Shruti! In this video, we will discuss errors of commission, a type of accounting error that occurs when a transaction is recorded incorrectly in the books of accounts, despite being entered.

What is an Error of Commission?
An error of commission arises when a mistake is made in the recording, posting, or calculation of a transaction. These errors may affect the accuracy of the trial balance and the financial statements. Examples include:

Posting an amount to the wrong account.
Recording an incorrect amount.
Entering the transaction on the wrong side of the ledger.
Key Features of Errors of Commission:
Impact on Trial Balance: These errors often lead to a mismatch in the trial balance.
Example: Crediting a wrong customer account or recording ₹5,000 as ₹500.
Financial Implications: Such errors can distort the actual financial position and may require adjustments during reconciliation.
Why Learn About Errors of Commission?
Understanding these errors helps in:

Detecting mistakes during trial balance preparation.
Maintaining accuracy in financial statements.
Ensuring accountability and avoiding misrepresentation in accounting.
We will cover:

Practical examples of errors of commission.
How to identify and correct them in the books of accounts.
This video is especially useful for Class 11 and 12 students and accounting beginners who wish to strengthen their foundational knowledge.

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