Syllabus Edition
First teaching 2025
First exams 2027
Error of Commission (Cambridge (CIE) IGCSE Accounting): Revision Note
Exam code: 0452 & 0985
Error of commission
What is an error of commission?
An error of commission occurs when one entry for a transaction is entered into an incorrect account but the type of account is correct
A debit entry could have been entered into the wrong expense account
A transaction could have been entered into an account for the incorrect customer
A transaction could have been entered into an account for the incorrect supplier
The correct amount is included in the total for the debits and the total for the credits
The totals will therefore balance
How do I correct an error of commission?
Undo the entry in the incorrect account
This means making an equal entry on the opposite side of the account
Make an entry in the correct account
Worked Example
On 1 March 2024, Ashika identified an error where goods were sold to Kiha for $200, but the entry was made in Dinah’s account in the sales ledger. The transaction was entered correctly in the sales account.
Prepare journal entries to correct the error. A narrative is required.
Answer:
The accounts currently look like:
Debit Dinah $200
Credit sales $200
The accounts should look like:
Debit Kiha $200
Credit sales $200
Fix the errors
Undo the mistake by crediting Dinah’s account
Debit Kiha’s account
Journal
Date | Details | Debit $ | Credit $ |
2024 Mar 1 |
Kiha |
200 | |
Dinah | 200 | ||
Correction of error of commission - credit sale was debited to Dinah’s account instead of Kiha’s |
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