IGCSEAccountingCambridge (CIE)Revision Notes3. Verification of Accounting RecordsThe Trial Balance & Correction of ErrorsError of Omission

Syllabus Edition

First teaching 2025

First exams 2027

Error of Omission (Cambridge (CIE) IGCSE Accounting): Revision Note

Exam code: 0452 & 0985

Dan Finlay

Written by: Dan Finlay

Reviewed by: Lucy Kirkham

Updated on

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:

Journal

Date

Details

Debit

$

Credit

$

2024
Mar 1

 

Kiha

 

200

     Sales

200

Correction of error of omission - credit sale to Kiha not recorded

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    Author
    Reviewer
    Dan Finlay

    Author: Dan Finlay

    Expertise: Maths Subject Lead

    Dan graduated from the University of Oxford with a First class degree in mathematics. As well as teaching maths for over 8 years, Dan has marked a range of exams for Edexcel, tutored students and taught A Level Accounting. Dan has a keen interest in statistics and probability and their real-life applications.

    Lucy Kirkham

    Reviewer: Lucy Kirkham

    Expertise: Head of Content Creation

    Lucy has been a passionate Maths teacher for over 12 years, teaching maths across the UK and abroad helping to engage, interest and develop confidence in the subject at all levels.Working as a Head of Department and then Director of Maths, Lucy has advised schools and academy trusts in both Scotland and the East Midlands, where her role was to support and coach teachers to improve Maths teaching for all.