Which of the following affects the accuracy and authenticity of trial balance?

A. error of omission
B. error of commission
C. error of transposition
D. error of original entry

Correct Answer:

Option C – error of transposition

Explanation

Trial balance is prepared when transactions posted into the accounts are balanced up. The trial balance is then prepared to check the accuracy of those posted transaction. It is normal sometimes that some errors may be apparent but despite this, they may not affect the trial balance. It is very important for any accounting officer to note that these may occur in one way or another.

A transposition error is simply substituting two sequential digits. Transposition errors are errors where figures (digits) are written in the wrong order in either a credit or a debit entry. This would create an imbalance between credits and debts, and so the error would be indicated by extracting a trial balance. For example, number 78 for 87 or 1346 for 1436.