PRC-1 · Chapter 3 · Question 71 of 100
An invoice for Rs. 5,000 sent to a customer was completely lost and never entered into any book of prime entry or ledger. What type of error is this, and will it affect the trial balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Error of complete omission; No, it will agree.
Explanation
An error of complete omission occurs when a transaction is entirely left out of the accounting records. Since both the debit and credit are missing, the trial balance remains balanced.
More Ledgers and Trial Balance MCQs
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- Q74The Sales account was undercast by Rs. 1,000. By coincidence, the Rent Expense account was also undercast by Rs. 1,000. What type of error…
- Q75A supplier's individual account in the Payables Ledger typically carries a credit balance. If it unexpectedly shows a debit balance, what…
- Q76If a customer's individual account in the Receivables Ledger displays a credit balance, what is the most likely reason?
- Q77In an adjusted trial balance, how is 'Prepaid Rent' classified, and in which column does its balance appear?