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Financial Accounting · Suspense accounts

Errors That Do Not Affect the Trial Balance in ACCA Financial Accounting

Updated 11 October 2026 · Fact-checked

Some errors leave the trial balance balanced because debits still equal credits. These are errors of omission, commission, principle, original entry, compensating errors and reversal of entries. To solve a question, find the wrong entry, work out the correct entry, and journal the difference. No suspense account is needed.

Understand Errors That Do Not Affect the Trial Balance

A trial balance lists every ledger balance. Total debits should equal total credits. If they do, the books are arithmetically consistent. That does not mean they are correct.

Six types of error keep the totals equal. Each one is either a balanced wrong entry, or two mistakes that cancel out.

  • Error of omission: a transaction is left out completely, so both the debit and the credit are missing and the trial balance still balances.
  • Error of commission: the right type of account is used, but the wrong account. For example, a debit to the electricity expense instead of the gas expense.
  • Error of principle: the wrong type of account is used, breaking an accounting principle. For example, a non-current asset bought is debited to repairs expense (capital treated as revenue).
  • Error of original entry: the wrong amount is used for both the debit and the credit. For example, $540 is recorded as $450 on both sides.
  • Compensating error: two separate errors of equal amount, one on the debit side and one on the credit side, cancel each other out.
  • Reversal of entries: debit and credit are put on the wrong sides. For example, a cash sale debits sales and credits cash.

A suspense account is used only when the trial balance does not balance. These six errors do not create a difference, so you correct them with a journal that does not involve suspense. The effect on profit varies. An error of principle or a mix-up between expense and asset changes profit. An error of commission between two expense accounts does not.

Key formulas to remember

Why the trial balance still balances
Total debits = total credits, even though an entry is wrong
The six errors either post equal debits and credits, or two errors cancel.
Correction journal (general rule)
Dr account that should have been debited and Cr account that should have been credited, then reverse the wrong entry
Cancel the wrong entry, then post the right one. Often combine them into one journal.
Error of original entry correction
Correct amount − wrong amount = adjustment on both sides
If too little was recorded, post the extra. If too much, reverse the excess.
Reversal of entries correction
Adjustment = 2 × the original amount
Cancel the wrong entry once, then post the correct entry once. Both sides move by double the amount.
Compensating errors
Debit error amount = credit error amount
Correct each error separately with its own journal. No suspense is used.

How to solve Errors That Do Not Affect the Trial Balance questions

Use this method for any question asking you to identify or correct an error that does not affect the trial balance.

  1. 1Write down what was actually recorded: the account debited, the account credited and the amount.
  2. 2Write down what should have been recorded.
  3. 3Compare the two. Decide the error type: omission, commission, principle, original entry, compensating or reversal.
  4. 4Check whether suspense is needed. If both sides were posted equally, it is not.
  5. 5Write the correction journal: debit the account that is under-debited or should have been debited, credit the account that should have been credited. Take off the wrong entry in the same journal.
  6. 6Check each ledger account's net effect to make sure it ends at the right balance.
  7. 7If asked about profit, decide which accounts are income statement items and which are statement of financial position items, then adjust profit.

Quickest way: Undo and redo

When to use it: Use this in multiple choice questions where you must pick the correct journal or the error type.

  1. Write the wrong entry as Dr X, Cr Y.
  2. Write the right entry as Dr A, Cr B.
  3. The correction is: reverse the wrong entry, then post the right one. So Cr X, Dr Y, then Dr A, Cr B. Net off any account that appears twice.
  4. Name the error by the pattern: same type of account but wrong one is commission; wrong class is principle; same wrong amount both sides is original entry; both sides swapped is reversal; two equal and opposite errors is compensating; nothing recorded is omission.

Common mistakes in Errors That Do Not Affect the Trial Balance

  • Using a suspense account to correct these errors.

    Students link all error corrections with suspense because the chapter is called suspense accounts.

    Fix: Ask if the trial balance was out. If debits already equalled credits, no suspense is needed.

  • Confusing error of commission with error of principle.

    Both involve posting to the wrong account.

    Fix: Commission: wrong account but same class, such as one expense for another. Principle: wrong class, such as an asset treated as an expense.

  • Correcting a reversal with only the original amount.

    Students think they only need to undo the wrong entry.

    Fix: Correct a reversal with double the amount. Undo the wrong entry and post the right one.

  • Treating a compensating error as one error.

    The two errors cancel, so it looks like nothing is wrong.

    Fix: Find and correct each error with its own journal. Each account is wrong by its own amount.

  • Saying an error of omission always leaves the trial balance unbalanced.

    Students mix up missing one side with missing the whole transaction.

    Fix: If the whole transaction is missing, debits and credits both miss the same amount and the trial balance balances. If only one side is missing, it does not balance and suspense is needed.

Worked examples

Example 1

A business bought a machine for $8,000 on credit from Rolt Ltd. The bookkeeper debited the amount to the repairs expense account and credited Rolt Ltd. Identify the error and prepare the correcting journal. State the effect on profit.

Show the solution
  1. Recorded: Dr Repairs $8,000, Cr Payables (Rolt Ltd) $8,000.
  2. Should be: Dr Machinery (non-current assets) $8,000, Cr Payables (Rolt Ltd) $8,000.
  3. The credit was correct. Only the debit is in the wrong class. An expense was used for an asset, so this is an error of principle.
  4. Journal: Dr Machinery $8,000, Cr Repairs $8,000.
  5. Repairs expense was overstated by $8,000, so profit was understated by $8,000 before depreciation.

Answer: Error of principle. Dr Machinery $8,000, Cr Repairs $8,000. Profit increases by $8,000 (before any depreciation).

Example 2

A cash sale of $300 was recorded as Dr Sales $300 and Cr Cash $300. Identify the error and give the correcting journal. Also state the net effect on the cash balance.

Show the solution
  1. Recorded: Dr Sales $300, Cr Cash $300.
  2. Should be: Dr Cash $300, Cr Sales $300.
  3. Debit and credit sides are swapped, so this is a reversal of entries.
  4. Correction is double the amount: $300 × 2 = $600.
  5. Journal: Dr Cash $600, Cr Sales $600.
  6. Check cash: it was reduced by $300 instead of increased by $300. Adding $600 fixes it. Sales was debited $300 instead of credited $300. Credit $600 fixes it.

Answer: Reversal of entries. Dr Cash $600, Cr Sales $600. Cash increases by $600 and profit increases by $600.

Exam tips

  • Before reaching for suspense, check whether the question says the trial balance did not balance. If it says it balanced, use a straight correction.
  • In multiple response questions, select only error types that leave debits equal to credits. Mark single-sided errors as not qualifying.
  • Match each description to its name: wrong account same class is commission; wrong class is principle; equal and opposite is compensating.
  • For reversals, calculate double the amount. This is a favourite number entry trap.
  • If asked for the effect on profit, say whether each account is in profit or loss or in the statement of financial position. A swap between two expenses does not change profit.

Practice questions from Suspense accounts

Errors That Do Not Affect the Trial Balance: frequently asked questions

Which errors do not affect the trial balance?

Errors of omission (whole transaction), commission, principle, original entry, compensating errors and reversal of entries. In each case total debits still equal total credits.

What is the difference between an error of commission and an error of principle?

In commission, the wrong account is used but it is the same type, such as one expense instead of another. In principle, the wrong type of account is used, such as treating a non-current asset purchase as an expense.

Give a compensating error example.

Sales are overcast by $500 (a credit error) and rent expense is overcast by $500 (a debit error), so the trial balance still balances. You must correct each account separately.

Do I use a suspense account for these errors?

No. Suspense is for errors that make the trial balance fail to balance. These errors leave it balanced, so you correct them with a normal journal between the accounts involved.