What is an error of omission and how is it identified?

• A. An error where a transaction is recorded with the wrong amount; it is identified by an imbalance in only one side of the trial balance.
• B. An error where a transaction is posted to the wrong date; it is identified by a mismatch in the date column.
• C. An error where a transaction is completely omitted from the books; it causes the trial balance to be unequal until corrected.
• D. An error where a transaction is recorded twice; it is identified by duplicate entries.

Answer: (C)

An error of omission is when a transaction is completely left out of the books. In double-entry bookkeeping, every transaction should have equal debit and credit recorded. If you omit one, those parts never enter the ledgers, so the records don’t reflect that activity and the trial balance shows a discrepancy until the missing entry is recorded. For example, if a sale on credit of 500 is not posted at all, both the receivables and sales are understated, and the totals in the trial balance won’t balance until you add the missing entry. Other mistakes involve posting with the wrong amount, on the wrong date, or posting twice, which create different symptoms in the accounts and the trial balance.