Trial Balance and Rectification of Errors · Class 11 · CBSE · Commerce Accountancy
Which of the following is considered an error of principle?
Practice question from Trial Balance and Rectification of Errors (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-325337
Which of the following is considered an error of principle?
- A.Recording a credit sale to Ram as a cash sale
- B.Treating the purchase of office furniture as a routine office expenseCorrect answer
- C.Omitting a transaction entirely from the books of accounts
- D.Posting a debit of Rs. 500 to an account as Rs. 50
Solution
Treating capital expenditure (furniture) as revenue expenditure (expense) violates fundamental accounting principles, making it an error of principle. It does not affect the agreement of the trial balance.
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