Practicing Success
Read the given below two statements and mark the correct answer. Assertion (A): The errors of omission may be committed at the time of recording the transaction in the books of original entry or while posting to the ledger. |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true but Reason (R) is False Assertion (A) is false but Reason (R) is true |
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). |
The correct answer is option 2- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). Assertion (A): The errors of omission may be committed at the time of recording the transaction in the books of original entry or while posting to the ledger. THIS IS TRUE. The errors of omission may be committed at the time of recording the transaction in the books of original entry or while posting to the ledger. These can be of two types: (i) error of complete omission (ii) error of partial omission When a transaction is completely omitted from recording in the books of original record, it is an error of complete omission. For example, credit sales to Mohan 10,000, not entered in the sales book. When the recording of transaction is partly omitted from the books, it is an error of partial omission. If in the above example, credit sales had been duly recorded in the sales book but the posting from sales book to Mohan’s account has not been made, it would be an error of partial omission. Assertion explains the error of omission whereas reason is an example of it. Both statements are true but reason does not explain why assertion is true. |