Question

Sales to Ram of Rs. 336, were not recorded. This will affect _________.

• A. only sales account
• B. only Ram's account
• C. both (A) and (B)
• D. none of the accounts

Answer 1

The correct option is C both (A) and (B)

If a transaction remains altogether unrecorded in the journal i.e. the book of original entry, it will be termed as an error of omission. It is termed as a two-sided error and such error will not affect the agreement of trial balance because the transaction is altogether omitted from being recorded in the books of accounts. As the transaction is not recorded in the books it will affect both the accounts of entry i.e. Sale account and Ram account.