Course Outline
Join PRO

What is a transposition error?

Author:
Harold Averkamp, CPA, MBA

Definition of Transposition Error

A transposition error occurs when an amount is recorded incorrectly as the result of switching the positions of two (or more) digits. The switching of the positions causes a difference (between the recorded amount and the correct amount) that will be evenly divisible by 9.

Examples of Transposition Errors

For example, if 986 was the correct amount, but it was recorded incorrectly as 968, the difference between the two amounts is 18. Since this difference is evenly divisible by 9 (18 divided by 9 = exactly 2), the mistake is described as a transposition error. Another example of the many possible transposition errors is recording 3662 as 3626. In this situation, the difference between the correct and incorrect amounts is 36. Because the difference is evenly divisible by 9 (36 divided by 9 = exactly 4), this indicates that the error could be the result of transposing digits.

Determining Whether a Transposition Error Was Involved

If you are faced with finding a difference between two amounts, you might save some time by first dividing the difference by 9. (A few differences that are evenly divisible by 9 include: 9, 18, 27, 36, 45, 54, 63, 72, 81, etc.) Knowing that the error could be a transposition error may lead you to first review the more relevant amounts.

Join PRO to Track Progress

Advance Your Accounting and Bookkeeping Career


  • Perform better at your job
  • Get hired for a new position
  • Understand your small business
  • Pass your accounting class
Watch the Video
Certificates of Achievement

Earn Our Certificates of Achievement

Certificates of Achievement
  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
View PRO Plus Features

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,644 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Read 2,644 Testimonials

Course Outline
Take the Tour Join Pro Upgrade to Pro Plus