In case of Errors of Principle, there is no effect on the Trial Balance as the amounts are placed on the correct side of the Trial Balance though in wrong accounts. Is the above statement correct?

Yes, it is correct

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No, it is not correct

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Errors of Principle effect Trial Balance

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None of the above

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Solution

The correct option is A
Yes, it is correct

In case of Errors of Principle, there is no effect on the Trial Balance.

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Similar questions

Q. When the amounts are placed on the correct side of the trial balance but in wrong accounts, then it is called errors of .

Compensating errors do not effect the trial balance. Is the statement correct?

Errors of commission of posting of wrong amounts in both the accounts can be revealed by Trial Balance. Is this statement correct?

State whether the following statements are True or False-

1) A trial balance can agree in spite of certain errors.
2) Errors committed due to lack of accounting knowledge are errors of omission.
3) Trial balance is prepared from the balance of ledger accounts.
4) Rectification entries are passed in cash book.
5) Single sided errors affect only one account.
6) Suspense account is automatically closed after rectification of all errors.
7) Errors affecting the agreement of trial balance are called on side errors.
8) There is no need to open a suspense account if the trial balance agrees.
9) All the errors can be rectified only through suspense account.
10) Compensating errors affect the agreement of trial balance.

Give one word/term on phrase for each of the following statements.

1) Errors of incorrect entries or wrong posting.
2) Account to which difference in trial balance is transferred.
3) Errors which are committed by clerks.
4) Transaction remained to be recorded at all in the books of accounts.
5) Error in which the effect of one mistake is nullified by another mistake.
6) An entry passed to cancel wrong effects given and give correct effects to accounts affected.
7) Errors of calculation.
8) Error which affects the agreement of trial balance.
9) Error which are not disclosed by the trial balance.
10) Taking the Total more while closing books of accounts

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In case of Errors of Principle, there is no effect on the Trial Balance as the amounts are placed on the correct side of the Trial Balance though in wrong accounts. Is the above statement correct?

The correct option is A Yes, it is correct In case of Errors of Principle, there is no effect on the Trial Balance.

The correct option is A
Yes, it is correct

In case of Errors of Principle, there is no effect on the Trial Balance.