Error of Omission (Cambridge International IGCSE Accounting)

Error of omission

What is an error of omission?

• An error of omission occurs when a transaction is not entered into any ledger accounts

  • The transaction is omitted
  • It is possible that the transaction was not entered into the books of prime entry

• The transaction is not included in the total for the debits and the total for the credits

  • The totals will therefore balance

How do I correct an error of omission?

• Enter the transaction correctly into the ledger accounts

  • You essentially just need to make the entries as normal

• Make the journal entries

Worked Example Ashika is a sole trader. On 1 March 2024, Ashika identified an error where the sale of goods worth $200 to Kiha was not entered into the ledger accounts.

Prepare journal entries to correct the error. A narrative is required.

Answer:

Final answer: Journal

Final answer: Date	Final answer: Details	Final answer: Debit Final answer: $**	Final answer: Credit Final answer: **$
Final answer: 2024 Mar 1	Final answer: Kiha	Final answer: 200
	Sales		Final answer: 200
	Final answer: Correction of error of omission - credit sale to Kiha not recorded