Question

How do you fix errors of omission?

Answer 1

We can redress the mistakes or errors of omission by passing a journal entry by giving the right debit and credit to the records. To amend a mistake, we need to drop the impact of wrong debit or credit by reversing it and reestablish the impact of right debit or credit.

For instance, rupees 1,00,000 worth of salaries wasn’t recorded. To make the remedy, a journal entry of rupees 1,00,000 should be added under “salary expense account” (debit) and rupees 1,00,000 added as “salaries payable” (credit).

Also check:Difference Between Error of Omission and Error of Commission