Which of these mistakes is classified as an error of omission?
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Answer: C. The total of the sales journal has not been posted to the Sales Account
Explanation
Failing to post a journal total to the ledger represents an error of omission that affects account balances. This specific omission leaves out a vital ledger update while preserving general journal records. Accountants uncover these gaps through regular ledger reconciliations. Errors of omission occur when transactions are entirely forgotten or unposted. Complete omissions leave no trace in ledgers, whereas partial omissions affect trial balance totals. Ledger posting omissions disrupt specific account balances.
Bookkeeping controls require tracing entries from journals through to ledgers. Missing ledger postings distort specific financial statement line items. Internal audits check journal-to-ledger transfers to catch these mistakes. Recording sales in purchase journals represents an error of original entry. Debiting Mohan's account for wages paid to him is an error of posting to the wrong account. Repairs debited to buildings involves an error of principle.
- Subject
- Accounting and Finance
- Category
- Accounting
- Topic
- —
- Difficulty
- medium
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