Glossary
Error of original entry
Recording the wrong amount from the start, in both entries.
What it means
An error where an incorrect figure is entered in the book of prime entry and carried into both ledger entries; it does not affect the trial balance.
Example
A sale of RM520 recorded as RM250 in both accounts is an error of original entry.
Why it matters
Both sides are equally wrong, so the trial balance still agrees.
In practice
An error of original entry means the wrong figure enters the books at the source, for example from a mistake in the day book or a misread invoice. The same wrong figure is then carried to both the debit and the credit. Both sides are equal, so the trial balance still agrees.
Suppose a credit sale of RM720 is written into the sales day book as RM270. Both the sales account and the customer's account are understated by RM450, but they still balance each other. Correction records the RM450 difference on both sides.
A transposition error, where digits are swapped as in RM72 written as RM27, is one form of this. Compare it with an error of omission. In original entry the wrong amount is recorded. In omission no amount is recorded at all.
If you mix up the error types in exam questions, we can help. One of our teachers can work through a mixed set with you and show how to tell them apart. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 3.1 The trial balance (page 13).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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