ICAEW AF · Chapter 7 · Question 10 of 12
An invoice for goods bought on credit for £950 was not recorded in the books at all. Which journal corrects this error?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Purchases £950, Credit Trade payables £950
Explanation
An error of omission means neither side of the transaction was recorded, so the trial balance still agrees. The correction simply records the original transaction: debit purchases to recognise the cost and credit trade payables to recognise the amount owed. Bank is not involved because the goods were bought on credit.
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