What is an error of original entry and how does it affect the trial balance?

• A. An error where a transaction is recorded with the wrong amount but in the correct accounts; it does not affect the trial balance.
• B. An error where a transaction is omitted from the books; it always affects the trial balance.
• C. An error where a transaction is posted to the wrong account; it has no effect on the trial balance.
• D. An error where VAT is calculated incorrectly; it always affects the trial balance.

Answer: (A)

An error of original entry happens when you record a transaction with the wrong amount but do it in the correct accounts. This changes the size of both sides of the journal entry, but because the debit and credit amounts are still equal, the totals in the trial balance remain in balance. So the trial balance won’t flag this mistake, even though the figures in the individual accounts are incorrect. To fix it, you’d compare the entries with source documents or the original invoice and post a correcting entry. If the error were omission or posting to the wrong account, the trial balance would typically reveal a discrepancy or misclassification, making those issues detectable.