Journal entries and correction of errors: the general journal records adjustments, and corrections are made through it.
Errors that do not affect the trial balance: omission, commission, principle, original entry, complete reversal and compensating errors. Errors that do affect it are corrected using a suspense account, which is cleared once all errors are found.
Remember
- Six errors do not affect the trial balance (omission, commission, principle, original entry, reversal, compensating).
- A suspense account holds the difference until errors are corrected.