Errors not revealed by trial balance: commission, complete reversal, compensating, omission, original entry, principle
Some accounting errors leave the trial balance perfectly balanced, so they stay hidden. Six named error types can do this: commission, complete reversal, compensating, omission, original entry, and principle.
Real World
Tesco once discovered that a supplier invoice had been posted to the wrong subsidiary account — an error of commission that left both debit and credit totals perfectly balanced yet the creditor account completely wrong.
Exam Focus
When asked to 'explain', state why the trial balance still balances — examiners require the debit/credit impact, not just the name.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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