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Question
If transactions are not recorded in the books of account as per fundamental rules of accounts, such error is said to be an error of _________.
If transactions are not recorded in the books of account as per fundamental rules of accounts, such error is said to be an error of _________.
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Solution
The correct option is B principle
Accounting errors are classified as:1) Error of Principle2) Error of omission3) Error of commission4) Compensating error
Error of principle are those where the fundamental rules of accounting are not followed. For example, capital expenditure are debited to account as revenue expenditure or vice-versa.
If transactions are not recorded in the books of account as per fundamental rules of accounting, error is said to be error of principle.
Accounting errors are classified as:
1) Error of Principle
2) Error of omission
3) Error of commission
4) Compensating error
Error of principle are those where the fundamental rules of accounting are not followed. For example, capital expenditure are debited to account as revenue expenditure or vice-versa.
If transactions are not recorded in the books of account as per fundamental rules of accounting, error is said to be error of principle.
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