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Which one of the following types of bookkeeping error is never indicated when a trial balance of nominal ledger account balances is extracted
A error of commision
B error is omission
C error of principle
D transposition errorsIs the ans B?
Murad is correct (even though he is not the tutor, and this is the Ask the Tutor Forum 🙂 )
The reason is that the question asks for errors that are ‘never’ indicated.
An error of omission will not be indicated if the debit and credit have both been missed out, but it can also be the case that only the debit or only the credit has been missed – in this case it will be indicated.An error of principle is always where there has been a debit and a credit, but the error is that it is to the wrong account. Because there has been a debit and a credit the trial balance will still balance.
Sir, Error of Commission also doesn’t affect the trial balance.
So it can’t be indicated in the trial balance.
So why is the answer C?An error of commission is where an entry has been posted incorrectly. It may have just been posted to the wrong account (in which case the trial balance will still balance) but it could be that the wrong amount was entered in one of the accounts, or that one of the entries was posted to the wrong side of the account. In those cases the trial balance will not balance.
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