Question

Clerical errors in the book of accounts are classified as:

• A. Errors of omission and errors of commission
• B. Compensating and non-compensating errors
• C. Errors of duplication and errors of replication
• D. Errors of principle and subjective errors

Hint:

Reconcile books periodically and cross-check entries to detect clerical errors early

Answer 1

The Correct Option is A

Clerical errors occur during the recording or posting of transactions. Errors of omission happen when a transaction is entirely missed from the records, e.g., failing to record a credit sale. Errors of commission occur when a transaction is recorded incorrectly, such as debiting the wrong account or entering an incorrect amount. These errors do not affect the trial balance but can lead to incorrect financial statements. Identifying and correcting such errors is critical to maintaining accurate accounting records.