Question

Goods costing Rs. 9000 given as charity 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

The correct option is 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. This is when a transaction is completely omitted to be recorded in the books or recorded in journal but omitted to be posted in the ledger accounts. In this no debit and credit effect is observed because the complete transaction is omitted. In this case the trial balance will tally.