Glossary
Error of omission
A transaction left out of the books entirely.
What it means
An error where a transaction is completely omitted from the accounting records; it does not affect the trial balance.
Example
A credit sale of RM300 is never recorded at all.
Why it matters
Because both entries are missing, the trial balance still balances, so it hides this error.
In practice
An error of omission leaves out both the debit and the credit. The trial balance still agrees, so the mistake stays hidden. Because nothing was entered, no suspense account is involved. Correction means recording the transaction now, with its full double entry, as if posting it for the first time.
For instance, a purchase of goods on credit for RM300 from a supplier is never written down. Both purchases and trade payables are understated by RM300, yet the totals still balance.
Students often confuse it with an error of original entry. In an omission the transaction is missing altogether. In an error of original entry the transaction is there, but the wrong amount was used on both sides. Omission is a gap in the records. Original entry is a figure that is incorrect from the start.
If the six error types blur together, one of our teachers can give you a simple way to tell them apart in any exam question. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 3.1 The trial balance (page 13).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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