Error of Transposition

What is Transposition error?

Transposition error is an error occurs by the reversal of digits such as recording 87 for 78, or 420 for 402. A slide is the entry of a number with an incorrectly placed decimal points, such as recording 2,170 for 21,700, or 4,500 for 450.

How to locate and Rectify Transposition Error?

A quick way to check for either a transposition or a slide is to find the difference between the debit and credit column totals of the trial balance and divided this amount by 9, an answer without a remainder indicates that either a transposition error or a slide may have been made. To find these types of errors, you need to carefully check all amount on the trial balance against the ledger account balances to make sure that all balances were correctly copied and you may need to check the ledger back to the general.

It is important to determine what type of error has been made, for the method of correcting an error depends on its type.


Example

An $89 payment for telephone bill was journalized as a debit to telephone expense by $98 and credit to cash by $98.

Analysis: 

This is a transposition error; the digits are reversed in the amount. This error can be corrected as if debit to cash by $9 and credit to telephone expense by $9.

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Rectification Entry

Transposition Error

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