Goods costing Rs. 55000 distributed as free samples were not recorded. This is an error of _____.

Omission

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Commission

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Principal

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Compensating

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Solution

The correct option is A Omission
Error of omission is when a transaction is not recorded at all in the journal or in any subsidiary books, both debit and credit aspect of the transaction is missing, which does not affect the trial balance.
When goods are distributed as free samples advertisement account and purchases account is affected. There will not be any effect on the trial balance because of this error.

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