Write the meaning of errors of omission with example. |
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Ans : This error arises when a transaction is completely or partially omitted to be recorded in the books of accounts. Errors of omission may be classified as under:
a. Complete omission:-This error arises when any transaction is not recorded in the book of original entry. This error does not affect the trial balance.
Example: Goods purchased on credit from Santosh not recorded in purchases book.
b. Partial omission:-When the transaction is recorded only in one aspect and omitted to record in another aspect. It is called partial omission.
Example: Transaction correctly recorded in the book of original entry but not posted in ledger at all.
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