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Errors of omission are classified into two parts, i.e., errors of complete omission and errors of partial omission:


(a) Errors of Complete Omission

The complete transaction escapes from being recorded. The accountant forgets to record these transactions in the subsidiary books or in the journal proper. Omission to record goods sold to Mohan or goods purchased from Ram, or goods returned by Wahid or goods returned to Brown in the subsidiary books and credit purchase of furniture in the journal proper are ‘the examples of errors of complete omission.

Errors of complete omission can be rectified by passing the correct entry on the old assumption that “It is never too late to mend”.


(b) Errors of Partial Omission

In case of partial omission, the transaction is recorded at the debit side of an account but corresponding credit is omitted to be recorded. For example, goods purchased from Fahim was recorded in the purchases book but omitted to be recorded in Fahim’s personal account. In the same way, goods sold to Malik were recorded in the sales book but it was omitted from being recorded in the Malik’s account. These errors are known as errors of partial omission.

Partial errors affect only one account, so they will be rectified by opening suspense account. These errors can also be rectified without opening suspense account. Rectification of errors of omission is explained with the help of the following illustration.


Illustration 1. Rectify the following errors:

1. Goods worth $ 2,000 returned by Keshwani were taken into stock bill the transaction was not recorded in the books.

2. Goods of the value of $ 1,000 returned to Brown but omitted to record the transaction in the books of accounts.

3. Goods purchased from Darbara Singh was recorded in the purchases book but no entry was made in Darbara Singh’s account. The purchases were worth $ 7,000.

4. Goods sold to Rao for $ 700 was not recorded in the Rao’s account.


Journal Entry


These errors may be regarding wrong totaling of subsidiary books or writing wrong amount in the subsidiary books or posting wrong amount in the ledger accounts or incorrect balancing of ledger accounts.

These errors are also concerned with errors in calculation.


(a) Recording wrong amount in the subsidiary books

Sometimes transactions are recorded in the subsidiary books with wrong amount. For example, a purchase of goods worth $ 1000 from Ram was recorded in the purchases book with $ 100. The error has been committed in purchase book, so posting will be made at the credit side of Ram’s account with $ 100 only. Both the debit record in the purchases book and credit posting at the credit of Ram’s account has been with $ 100, so the error cannot be detected by trial balance. Rectification of error will require that correct entry with the amount short written or excess written be passed again.


(b) Wrong totaling of subsidiary books

Subsidiary books either show debit balance or credit balance. Purchases book, returns inward book and bills receivable book show debit balance. Sales book returns outward book and bills payable book show credit balance. Errors in the subsidiary books may also be regarding totaling. Sometimes, we total short or undercast subsidiary books and sometimes we overcast them. Errors of undercasting and overcasting affect either debit or credit side so their rectification can be made by raising suspense account and also without raising suspense account. These errors are discovered by trial balance. If such editors of totaling in the subsidiary books are there, trial balance will not tally.


(c) Posting wrong amount in the ledger accounts

We prepare ledger accounts with the help of subsidiary books and journal proper. It is just possible that the wrong amount may be carried forward to ledger accounts. For example, sales of $ 2.000 to Mohan were correctly posted in the sales book but debited to Mohan’s account with $ 200 only. Rectification will require that Mohan’s account should be debited with $ 1,800 again. The error will be detected by trial balance because credit side has $ 2,000 (as per sales book) and the debit side of Mohan’s accounts has only $ 200.


(d) Posting at the wrong side of ledger account

Sometimes posting from subsidiary books and journal proper may be made at wrong side. For example, goods worth $ 3,000 were returned by Sohan. The transaction was correctly recorded in sales return book but was posted at the debit side of Mohan. In case of sales return, debtors accounts are credited or posting from sales return book is made at the credit side of debtors account. This mistake will cause difference between the debit and credit total of trial balance with the amount. double of the original amount. The above errors will cause a difference of $ 6,000 in the balance. These errors are detected by trial balance.


(e) Incorrect balancing of ledger accounts

If ledger accounts are not correctly balanced, there will be difference in the debit and credit total of the trial balance. Rectification of the error will require that the specific account should be debited in case debit balance is cast short. In the same way, the specific account will be credited if the credit balance is short cast.