Location of errors of principle, errors of compensating nature and errors of omission is
slightly difficult because of the fact that such errors do not aiTect the agreement of the Trial Balance and, therefore, their location may he considerably delayed. However, location of errors of commission is comparatively easier because they affect the agreement of the Trial Balance. Thus, the errors can he classified into two categories from the point of view of locating then
(i) Errors which do not affect the agreement of the Trial Balance.
(ii) Errors which affect the agreement of the Trial Balance.
Errors which do not affect the agreement of the Trial Balance. As stated before, errors of omission, errors of commission and ertors of a compensating nature by themselves do not affect the agreement of the Trial Balance. Their location is therefore a difficult process. They are usually found out when statement of accounts are received by the business or sent to the customers or during the course of internal or external audit and sometimes by chance. For example, if a credit purchase of Rs 500 from Ram has not been recorded in the books of accounts, the error will not affect the agreement of the Trial Balance and, therefore, at the time of finalising the accounts it may not be traced out However, this will be found out when a statement of account is sent to Ram showing the money due to him or when a statement of account is received from Ram showing the money recoverable by him.
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