A transposition error occurs when you leave a zero off a number or reverse a number. The rule of thumb is that if something doesn't balance and the difference is divisible by 9 then it's a transposition error.
So, here's the trick. Anyone can divide the difference by 9 in excel or whatever your using, but here's a trick the old timer's use: add the numbers up, if you get a 9, the number is divisible by 9.
For example:
- Difference of 27; 2 + 7 = 9 - transposition error
- Difference of 2749; 2 + 7 + 4 +9 = 22; 2 + 2 = 4 - not a transposition error
- Difference of 5733; 5+ 7+ 3 + 3 = 18; 1+ 8+ = 9 - transposition error
Works great for narrowing down errors when entering trial balances but if you are just footing something and it's not too long, just foot it twice in excel and then use a third column to subtract one footing from the other and you can find your errors.
