The correct answer is D. Omission of an entry into ledger.
A trial balance is a list of all the accounts in a company’s general ledger, with their balances as of a specific date. The total of the debits must equal the total of the credits, or the trial balance will not balance.
There are several types of errors that can cause a trial balance to not balance. Casting errors are errors in adding or subtracting numbers. Posting errors are errors in transferring amounts from the journal to the ledger. Omission errors are errors in recording transactions in the journal or ledger.
Of these errors, only omission errors will not affect the agreement of the trial balance. This is because omission errors do not change the total of the debits or the total of the credits. For example, if a company purchases a new piece of equipment for $10,000, the journal entry would be:
Dr. Equipment $10,000
Cr. Cash $10,000
If the accountant forgets to record this entry in the journal, the total of the debits and the total of the credits in the general ledger will still be equal. However, the equipment will not be recorded on the balance sheet, and the company’s financial statements will be inaccurate.
Casting and posting errors, on the other hand, will affect the agreement of the trial balance. For example, if the accountant incorrectly adds the numbers in the journal entry for the equipment purchase, the total of the debits and the total of the credits in the general ledger will not be equal. Similarly, if the accountant incorrectly transfers the amount from the journal to the ledger, the total of the debits and the total of the credits in the ledger will not be equal.
In conclusion, the only error that does not affect the agreement of the trial balance is omission error. This is because omission errors do not change the total of the debits or the total of the credits.