Accounting is the term related to the processing and analysing the financial transaction for recording the data in a strong, summarized, sorted, and retrievable results. Accounting is a discipline which should be accurate and comprehensive related to any of the economic entity like various businesses and large co-operations.
The students studying accounting needs to be perfect with the accounting principle so that they do not make accounting errors?
What are accounting errors?
In simple words, the accounting errors are nothing but the mistakes made in Bookkeeping and accounting. These mistakes could be either related to routine or it could be related to the accounting principles. The errors tend to happen anywhere like while transaction entering in the journal or in the subsidiary book, in the ledger posting, and more. This error causes the complete result of the transaction incorrect.
While working with the accounting principles the errors creep while recording, classifying, and at the time of summarizing the data just because of the omission and the commission act.
The students don’t even realize while they make errors due to insufficient knowledge or unclear concepts. The errors make the accounting answers of their assignment wrong and they face heavy fall in their grades. That is why learning accounting errors is as important as learning accounting principles. You need to be very particular in your studies when you have chosen a field like accounting. And at times it is always helpful to take help from the best resource near you.
To complete your assignments on time the most useful thing which a student can take help of is of the online services by the experts. The experts available online very well know with the accounting principles as well as the accounting errors which gives you the correct answers of the assignment. They give results of the financial transaction up to the mark with no mistake and step-wise pattern. So for taking the help of the expert is the best option for the students for solving their accounting assignments.
Types of accounting errors
On the basis of the nature of the errors, there are four classifications of the accounting errors:
- Error of omission
The error of omission is when any of the transaction is not recorded in the books of account by mistake. The error of omission can be partial or it can also be complete depending upon the mistake while writing the transaction.
The partial error of omission occurs in relation with the subsidiary book where the transaction is recorded in the subsidiary book but the accountant forgets to post it in the ledger. It could be explained by a simple example that is when a good is returned it is recorded in the book of sales return but not in the customer’s credit account. One more example is when a particular amount paid to the supplier is noted in the cash book but not in the supplier’s debut record. Such error creates great confusions in the future while creating financial account details of a month as a whole.
The complete error of omission or complete omission is when the error is completely not recorded in the books of account. When a bookkeeper omits an invoice to be entered in the daybook of the sales.
- Error of commission
The error of commission is one in which when a transaction is wrongly entered in the books of account. Either the record is entered incorrectly or partially which causes a big error. Such errors are caused mainly due to the absent-minded nature of the accountant or may be due to negligence and ignorance. Examples of error of commission are given below:
- Errors related to the subsidiary book
There are three types of subsidiary book errors:
- When a wrong amount is entered in the subsidiary book. For example, the numbers are Trans posited wrongly like Rs.540 is entered Rs.450.
- When the transaction is entered in any of the subsidiary book rather than the correct one. For example, the purchase is recorded in the sales daybook and the sales are recorded in the purchases daybook.
- When the subsidiary book is cast wrongly. The casting of a subsidiary book is periodically totaling of the daybook. When there is an error in the totaling then it is known as the error in casting.
If you have done excess in totally then it is known as over casting while short casting is one in which there us short totaling.
- Errors related to a ledger
This type of error is due to the error in posting an error in balancing as explained below:
- On the right side of an account, the wrong amount is posted. Like in the debit account of any person is recorded Rs.340 instead of Rs.430.
- An amount is posted twice in any of the accounts. Like the account of any person is debited twice with the payment of Rs.1000 or more.
- The error when the right amount is entered in the wrong side of a person’s right account. Like for purchase the account of a person is debited instead of credit.
- The error of posting also occurs when the wrong amount is entered in the wrong side of the right account of a person. Like instead of Rs.1000 of the purchase amount is debited with the amount of Rs.10000.
- Posting the amount on the right side with the correct amount as well but the account is wrong. Like the sale, the amount is debited to Mr. Smith rather than Mr. John who actually does the sale.
- The error of commission is also seen when the amount is correct but the account and the side both are wrong.
- Error in balancing
The error in the balancing is the result of excess or a very short balance in the account and the accounting result is balanced wrongly.
- Error of principle
The error of principle is when the account is entered wrongly that is against the accounting principles. When a revenue expenditure is entered as capital expenditure in the books of account it is said to be against the accounting principles. Such errors could take place due to:
- The revenue and the capital expenditures are not entered correctly
- The business expenses and personal expenses are not distinguished correctly
- When the difference between the production expenses and non-productive expenses are not understood correctly and thus making wrong records against the accounting principle.
These errors are mostly due to insufficient knowledge about accounting. Which clearly says that students should give special attention while studying accounting to understand each and every accounting principle to avoid minute to minute errors while entering the records in the book of accounts.
- Compensating errors
This type of error is one which compensates itself in the net results. We can say like if there is an over debt in any of the accounts it automatically gets compensated by any of the over credit in any of the other account. Or if a wrong credit is entered it is sometimes compensated by the wrong debit entered to the same extent.
These are the errors which a student needs to learn and understand in the field of accounting which is not an easy task. The above-given explanation is just an overview, the actual theory and concepts are not that easy and actually quite confusing for an accounting student to understand?
That is why it is always better for the students to look for help so that account becomes an easy subject for them. The online help is one of the best help among all where the students get well-structured and correct answers for their assignments and learning accounts than becomes easy for them.
Handling accounting in a smart way
There are certain points through which you can handle your accounting homework and assignments smartly. But you need to put a great effort and dedication towards it to see fruitful results.
- Make a habit of reading the accounting chapters from your textbook
You may have studied history or geography with skipping one or more topics which you feel are difficult to understand. But in accounting just like maths, one concept in the first chapter is related to the other in the next chapter.
You should not skip any of the topics as you don’t know which answers to your assignment they could help you. You should not read the text but try to understand each concept correctly. Accounts are all about to understand the “why” behind each concept.
When you take online help you easily understand each concept with the answer to all your doubts. The experts make you understand the concepts and not just give answers to complete the assignment. This makes you prepared for the exams and at the same time, you score high grades with the help of qualitative assignments of the expert.
Reading and understanding are not enough until you try to solve the accounting concepts and principles practically. The more you try to solve different problems the better you get familiar with the concepts. The best way of learning the accounting principles and the errors as well as practicing them through which you get to know each of your mistakes.
Homework and assignments are the best way of practicing the answers. When you answer the questions of your homework and assignment each time you get to know your mistakes. And when the questions are too hard to handle then you also get to know that you are certainly in need of help. The help of the experts is always reliable at any moment when you are searching for someone to bother their time for you.
The experts are available 24×7 and they know how to handle each of your questions in the correct way by giving you the right solutions. You don’t have to run anywhere and just by relaxing on your couch all your problems will be solved.
- Be attentive in the class
The professors while making you learn in the class often emphasize certain concepts which they think could help you or we can also say they are the one which could be asked in your assignments or exams. You should be attentive and immediately mark the important concepts and try to focus on them more along with the other ones.
Try to read the textbook before you go to attend the lecture so that you may know the concepts which are not easy to deal with and the related questions to be asked about it. This helps the student to clear their doubts in an easy way. Do not just keep memorizing what is thought in the class but try to keep yourself very clear with each concept so that solving homework is not a big handle.
- Taking the best help o the resources around
The other things which are useful for a student are looking for the resources around him like taking notes from your friends, group studying, test yourself, or simply get help from an online expert.
The help given by an online expert is always on time you never have to face late submissions or marks deductions. They are skilled and trained with lots of accounting knowledge which makes them understand each accounting question without any efforts. They know How to write high scoring answers for your assignment.
They understand the importance of completing the assignments on time and that is why they give their 100% to write a successful assignment for the students.
One of the famous experts is Nancie L Beckett who has completed her education from Harvard school of business. She has an MBA degree with 6 years of experience which makes her stand different from others. She helped many students in submitting the high scoring assignment along with the best answers. Students can easily rely on her for getting their assignment completed and learning accounts in a much easier way.
Accounting is an amazing subject with great career opportunity, once you understand how to deal with it the homework and assignment, accounting becomes an easy subject.