Question

Goods costing Rs. 7000 taken by the proprietor for personal use were not recorded. This ______.

• A. will affect the agreement of trial balance
• B. will not affect the agreement of trial balance
• C. may or may not affect
• D. None of these

Answer 1

Answer: (B)

will not affect the agreement of trial balance

Goods taken away by the proprietor were not recorded, this is an error of omission. An error of omission is when a transaction is completely omitted to be recorded in the books or recorded in the journal but omitted to be posted in the ledger accounts. These errors do not affect the agreement of the trial balance. This is because ledger accounts balances are transferred to the trial balance, if there is no posting made in the ledger account, the balance won't be transferred to the trial balance. Hence the trial balance will tally.