Question

Sales to Meena Rs.143 recorded in Sales Return Book. This error:

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

Answer 1

The correct option is D None of these

When sales is recorded into sales return book this is an error of posting into wrong account. The incorrect entry passed here is -

Sales Return A/c Dr 143

To Meena A/c 143

This entry will not affect the trial balance because the amount recorded is correct and same, error is only in posting of accounts, though the effect of such error is nullified when added in the trial balance because the debit and credit balances of the accounts are not affected.

This error will affect the profit of the year because amount of sales is added to the sales account balance of the year in trading account whereas sales return is deducted from the sales account balance which affects the gross profit. This gross profit is transferred to the profit and loss account to calculate the net profit which eventually is affected.