Question 11 of 52intermediate🔍 AnalyzeMCQ1 mark

Which of the following is not an error of commission:

Exercise: Test Your Understanding - IV | Q: 3 | (Page 35)
For More Understanding

Explanation

Option (D) is the correct answer because it represents an Error of Omission, not an error of commission. The provided text states that when a transaction is 'completely omitted from recording in the books of original record' (like cash sales not recorded in the cash book), it is an error of complete omission.

In contrast, the text defines Errors of Commission as errors involving 'wrong posting of transactions, wrong totalling or wrong balancing of the accounts, [or] wrong casting of the subsidiary books'. Options (A), (B), and (C) all involve performing an action incorrectly (overcasting, crediting instead of debiting, wrong balancing), which classifies them as errors of commission.

Solution Steps

  1. Step 1: Analyze the definition of Errors of Commission provided in the text: 'wrong posting... wrong totalling or wrong balancing... wrong casting... or wrong recording of amount'.

  2. Step 2: Analyze Option (D): 'Cash sales not recorded in cash book'. The text classifies a transaction omitted from recording as an Error of Omission ('When a transaction is completely omitted from recording... it is an error of complete omission').

  3. Step 3: Verify that Options (A), (B), and (C) fit the definition of Commission: (A) is wrong casting, (B) is wrong posting, and (C) is wrong balancing.

  4. Step 4: Conclude that since Option (D) is the only option that is an error of omission, it is the one that is 'not an error of commission'.

PreviousNext