Errors which are not disclosed by a Trial Balance/Limitations of a Trial Balance

The following errors cannot be detected by a Trial Balance :
(a) Errors of Ommission : When the transaction is not at all recorded in the books of accounts,
i.e. neither in the debit sider nor in the credit side of the account – trial balance will agree.
(b) Errors of Commission : Where there is any varition in figure/amount, e.g. instead of Rs.
800 either Rs. 80 or Rs. 8,000 is recorded, in both sides of ledger accounts – trial balance
will agree.
(c) Errors of Principal : Where wrong posting is made in the books of accounts, i.e. accounts
are prepared not according to double entry principle e.g. Purchased a Plant wrongly
debited to Purchase Account – Trial balance will agree.
(d) Errors of Misposting : When wrong posting is made to a wrong account instead of a
correct one although amount is correctly recorded, e.g., sold goods to B but wrongly
debited to D’s Account – trial balance will agree.
(e) Compensating Errors : When one error is compensated by another error e.g. Discount
allowed Rs. 100 not debited to discount allowed account, whereas interest received Rs.
100, but not credit to Interest Account – trial balance will agree.