Accountancy · Ch 6 — Trial Balance and Rectification of Errors
Errors of Omission
Errors of Omission
Errors of Omission
An error of omission occurs when a transaction is either not recorded at all in the books of original entry, or is recorded but not fully posted to the ledger. The key idea is that something that should have been written down has been left out — either completely or partially.
These errors are divided into two distinct types, and the accounting treatment differs depending on which type has occurred.
Error of Complete Omission
When a transaction is entirely missed — never entered in any book of original entry (such as the Sales Book, Purchase Book, or Journal proper) — it is an error of complete omission. Because the transaction never enters the accounting system, both the debit and the credit aspects are missing.
Example: Credit sales of ₹10,000 to Mohan are not recorded in the Sales Book at all.
Effect on the Trial Balance: The trial balance will still agree (tally), because both sides of the transaction are equally omitted. No entry means no debit and no credit — so the totals remain balanced. However, the trial balance is wrong because it is incomplete. Both the Sales account (credit) and Mohan's account (debit) are understated by ₹10,000.
Rectification: Since the transaction was never recorded, the rectification is simply to pass the journal entry that should have been passed originally.
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| Mohan's A/c Dr. | 10,000 | |||
| To Sales A/c | 10,000 | |||
| (Being credit sales to Mohan, now recorded) |
Error of Partial Omission
When a transaction is recorded in the book of original entry but the posting to one of the ledger accounts is missed, it is an error of partial omission. One side of the transaction has been posted correctly, but the other side has been left out.
Example: The credit sales of ₹10,000 to Mohan were correctly entered in the Sales Book. The posting to the credit of Sales account was done. However, the posting to the debit of Mohan's account was not made.
Effect on the Trial Balance: The trial balance will not agree. The debit side will be short by ₹10,000 (because Mohan's account is missing its debit balance), while the credit side is correct. The difference in the trial balance will point to the missing posting.
Rectification: The missing posting is completed by debiting Mohan's account. This is done by passing a journal entry that supplies the missing debit.
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
|---|---|---|---|---|
| Mohan's A/c Dr. | 10,000 | |||
| To Suspense A/c | 10,000 | |||
| (Being the missing posting to Mohan's account, now rectified) |
In the case of partial omission, the Suspense account is used as a temporary credit because the trial balance was out of balance. Once the missing debit is posted, the Suspense account is cleared. If the error is located and rectified before the trial balance is prepared, no Suspense account is needed — the missing posting is simply completed directly. …