Question

Sales to Meena of Rs 143 omitted to be recorded. This error __________ .

• A. is an error of commission
• B. will affect the trial balance
• C. will not affect the profit
• D. None of these

Answer 1

Answer: (D)

None of these

When a complete transaction is omitted to be recorded, this is known as error of omission.

Such errors do not affect the agreement of the trial balance because both debit and credit aspect of the transaction is missing from the books, so the net effect of the transaction is nullified.

This error will affect the net profit of the year as the sales account will be affected because of the omission, which affects the gross profit, this there by affects the net profit.