Transposition error is an error that occurs when digits are reversed while recording them. For example, 87 may be recorded as 78, or 420 as 402.
A slide refers to the entry of a number with incorrect placement of decimal points, such as recording 2.170 as 21.700 and 4.500 as 450.
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 divide this amount by 9.
If the answer does not have a remainder, this indicates that either a transposition error or a slide may have been made.
To find these types of errors, you should carefully check all amounts in the trial balance against the ledger account balances.
It is important to ensure that all balances are correctly copied, and you may need to check the ledger back to the general.
It is also important to determine what type of error has been made. This is because the approach used to correct an error depends on the type.
A payment of $89 was journalized for a telephone bill as a debit to a telephone expense account by $98. It was also credited to cash by $98.
This is an example of a transposition error, where the digits are reversed in the amount.
We can correct this error by making a debit entry to cash by $9 and a credit entry to telephone expense by $9.
A transposition error is an error that occurs when digits are reversed while recording them. For example, 87 may be recorded as 78, or 420 as 402. A slide refers to the entry of a number with incorrect placement of decimal points, such as recording 2.170 As 21.700 And 4.500 As 450.
To catch a transposition error in your work, always check your math and ensure that the numbers add up properly both with your work and when compared to previous calculations made by yourself or others on the same project/assignment/spreadsheet/etc.
No, a transposition error can only be corrected if the amount is evenly divisible by 9. If it is not, then the error is a slide, which can only be corrected if the amount is evenly divisible by 3.
The best way to correct a transposition error is to make a debit entry to cash by the amount of the error and a credit entry to the account with the incorrect balance by the amount of the error.
A transposition error is an error that occurs when digits are reversed while recording them. For example, 87 may be recorded as 78, or 420 as 402. A slide refers to the entry of a number with incorrect placement of decimal points, such as recording 2.170 As 21.700 And 4.500 As 450.
About the Author
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
Finance Strategists has an advertising relationship with some of the companies included on this website. We may earn a commission when you click on a link or make a purchase through the links on our site. All of our content is based on objective analysis, and the opinions are our own.
Content sponsored by 11 Financial LLC. 11 Financial is a registered investment adviser located in Lufkin, Texas. 11 Financial may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. 11 Financial’s website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links.
For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing. A copy of 11 Financial’s current written disclosure statement discussing 11 Financial’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from 11 Financial upon written request.
11 Financial does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to 11 Financial’s website or incorporated herein, and takes no responsibility therefor. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
© 2024 Finance Strategists. All rights reserved.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
