Errors of Commission

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 26, 2023

Errors of Commission: Definition

Errors of commission occur due to the negligence of the accountant or clerk. For this reason, they are often referred to as clerical errors or errors of inadvertence.

Let's consider a few examples to show how errors of commission are caused:

  • Posting the correct amount in the wrong subsidiary book
  • Posting the wrong amount to the correct side of the account
  • Posting the correct amount to the wrong side of the account
  • Double-posting (i.e., posting is done twice)
  • Posting to the wrong account of the same class (i.e., cash paid to B is debited to B & Bros.)

Other types of errors of commission may arise out of casting, posting, carryforward, and balancing.

Effects on Accounts

One of two effects is possible. Either the correct account will not be debited and an irrelevant account will be debited, or the correct account will not be credited and an irrelevant account will be credited.

Rectification of Entry

If an irrelevant account is debited instead of the correct account, follow these steps:

    1. Debit the account that should have been debited
    2. Credit the account that has been erroneously debited

If an irrelevant account is credited instead of the correct account, take these measures:

    1. Debit the account that has been erroneously credited
    2. Credit the account that should have been credited

Example

A credit sale of goods for $7,200 to Mr. David was erroneously debited to Mr. John's account.

Journal Rectification Entry 1

Example

A cheque for $3,480 was received from Royal Motors but was erroneously credited to TAU Motors' account.

Journal Rectification Entry 2

Errors of Commission FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.