Goods Purchased from Y for Rs. 4000, now returned, are passed through Purchase book. This is an error of ______.

omission

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commision

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principle

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compensating

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Solution

The correct option is D principle
In the given question entry should have been recorded in purchase return book but is recorded in purchase book. This is an error of principle. An error of principle occurs when an entry has been passed in the wrong account. These errors violate the basic fundamentals of accounting.

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Similar questions

Pass necessary Journal entries' to rectify the following errors:

(i) Goods returned to Mahima for Rs 5,000, entered into Sales Returns Book.

(ii) Kajol returned goods worth Rs 2,000, entered into Purchase Returns Book.

(iii) A credit purchase of Rs 3,000 from Ravina was recorded through Purchase Returns Book.

(iv) Goods worth Rs 1,160 returned to Karishma, were recorded in Purchase Book as Rs 1,106.

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