Types of Errors

Errors are committed knowing or unknowing which greatly affect the financial position of the particular organization. Generally there are two types of errors i.e. error of principles and clerical errors. Errors which are aroused when the fundamental principles of book-keeping and accountancy are not followed by the accountants called errors of principles. They may be committed either intentionally or unintentionally. Such errors are not disclosed by trail balance clerical errors are committed due to carelessness, negligence and frauds of accountants. Clerical errors can also be further divided into two i.e.

1. Errors Disclosed by a Trail Balance
2. Errors not Disclosed by a Trail Balance