A transaction left out of the books
A transaction that was never entered leaves the trial balance agreeing. Learn why, how it is found and how to put it in.
Task 1Why the trial balance still agrees3 questions
A trial balance checks one thing: that total debits equal total credits. Some errors leave the two totals equal, so the trial balance cannot show them.
An error of omission is a transaction left out of the books completely. There is no debit and no credit, so both totals are too low by the same amount.
Thornbury Joinery makes fitted furniture. Lena keeps its books. An invoice for £480 of timber from Oakline Timber slipped behind a desk and was never entered. Ignore VAT on it.
Task 2Putting it right2 questions
Task 3How an omission is found3 questions