Explain errors of omission with examples in detail.
Asked by Topperlearning User | 26th Jul, 2016, 01:33: PM
Error of omission is an error when a transaction is completely or partially missed from being recorded in the books of account. Such errors are of two types:
- Complete omission: This error arises when a transaction is not recorded completely in the books of accounts or if a transaction recorded in the journal is completely omitted to be posted in the ledger. This error does not affect the trial balance. For example, cash worth Rs.1,000 taken by the proprietor for personal use and not recorded in the books.
- Partial omission: This error arises when a transaction is not completely recorded in the books or if the entry is completely recorded but it may not completely posted in the ledger of accounts. For example, Rs.600 written off as depreciation on machinery, not been debited to depreciation account.
Answered by | 26th Jul, 2016, 03:33: PM
- Explain briefly the errors of commission along with example.
- What is meant by errors of principle?
- What is meant by a two-sided error? Explain with an example.
- What is meant by a one-sided error? Explain with an example.
- Name the errors which do not affect the trail balance with reasons.
- Name any two types of errors which affect the agreement of trial balance with examples.
- What is meant by compensating error? Explain with an example.
- State the type of errors committed in the below transactions: Sale of old furniture worth Rs.5,000 credited to the sales account A payment of Rs.2,300 for salaries was posted twice to the salaries account Goods returned to Rakesh worth Rs.3,200 were not recorded in the books of accounts Wages paid Rs.6,150 were recorded in the cash book as Rs.6,510
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