ACCA Applied Knowledge · Financial Accounting · Suspense accounts
Which one of the following is an error of omission?
A credit purchase invoice never entered in any account is an error of omission, because the whole transaction is missing and both debit and credit are absent, so the trial balance still balances. The other options are errors of amount, principle and commission.
- AA credit purchase invoice for $2,000 was never entered in any accountCorrect
- BA credit purchase invoice was entered as debit Purchases $2,000 and credit Payables $200
- CA credit purchase of $2,000 was debited to Non-current assets instead of Purchases
- DA credit purchase of $2,000 was debited to Purchases and credited to the wrong supplier
Explanation
An error of omission is where a transaction is left out of the books entirely, with neither debit nor credit made. The trial balance still balances. The second option is a transposition or single-sided error, the third is an error of principle, and the fourth is an error of commission.
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