An invoice for $128 of groceries sold on credit by Cedarwood Convenience Store was debited to Rina Osei instead of to Rita Owusu, who is also a credit custo...
Question 1 Report
An invoice for $128 of groceries sold on credit by Cedarwood Convenience Store was debited to Rina Osei instead of to Rita Owusu, who is also a credit customer of the shop. Nothing else about the double entry was wrong. Identify the error made in the sales ledger.
Answer Details
The sale was debited to a personal account, and the account chosen was another credit customer's, so the entry is in the right class of account but the wrong account within it. That is an error of commission.
The sales account was credited correctly and the total debits still equal the total credits, so the trial balance is unaffected. It is not an error of principle, because that would require the debit to go to a fundamentally different class of account, such as an expense rather than a trade receivable. Nothing was left out, so it is not an error of omission, and the entries are on the correct sides, so there is no reversal. The consequence is that the sales ledger shows the debt against the wrong person, which is why customer statements are checked as well as the control account.
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