Question

Goods costing Rs. 75000 distributed as free samples 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

When a transaction is not recorded in the books, this is known as error of omission. In this a transaction is completely omitted to be recorded in the books or recorded in the journal but omitted to be posted to the journal. In this both the debit and credit aspect of the transaction is not present in the books. Such errors do not affect the agreement of the trial balance, because the transaction is not posted in the ledger accounts, so the ledger would not reflect the effect of such transaction in the trial balance.