A credit purchase of ₹8,400 from Suresh was completely omitted from the books of account. What type of accounting error is this?
Answer and explanation
Correct answer: C. Error of complete omission
- Step 1: Identify the nature of the transaction. A credit purchase was not recorded in the Purchases Book at all.
- Step 2: Since neither the debit nor the credit aspect was recorded in the books, the error is an error of omission.
- Step 3: Because both aspects were completely left out, it is termed an error of complete omission and does not affect the Trial Balance.
Answer
Error of complete omission.
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