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Class : 11
Unit : Account

Write the meaning of errors of omission with example.

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.