Office was renovated and renovation charges were Rs. 5000. They were put in purchase book account. It is

Error of complete omission

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Error of principle

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Error of commission

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All of the above

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Solution

The correct option is A Error of principle
Renovation charges on office is a capital expenditure therefore, it should be debited to Building a/c and credited to Cash a/c.
Here, capital expenditure is recorded a revenue expenditure therefore, it is an error of principle.

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Similar questions

Q. Office was renovated and renovation charges were 5000. They were put in purchase book account. It is ___________.

Trial balance of Sagar did not agree. It showed an excess credit Rs 7,550. Sagar put the difference to suspense account. He located the following errors-

1) Sales return book was overcast by Rs 1,200.
2) Purchases book was undercast by Rs 750.
3) Goods returned to Mahesh Rs 1000 were recorded through sales book.
4) Credit purchase from Mahadev Rs 6,000 were recorded through sales book.
5) Credit purchase from Damodhar Rs 4,000 were recorded through sales book. However, Damodhar’s account was correctly credited.
6) Salary paid Rs 3,500 was debited to employee’s personal account.

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(a) Credit sales to Mohan Rs. 7000 were recorded in purchase book. However, Mohan's account was correctly debited.

(b) Credit purchase from Rohan Rs. 9000 were recorded in the sales book. However, Rohan's account was correctly credited.

(c) Goods returned to Rakesh Rs. 4000 were recorded in sales return book. However, Rakesh's account was correctly debited.

(d) Goods returned from Mahesh Rs. 1000 were recorded through purchase return book. However, Mahesh's account was correctly credited.

(e) Goods returned to Naresh Rs. 2000 were recorded through purchase book. However, Naresh's account was correctly debited.

Rectify the following errors assuming that suspense account was opened.

Ascertain the difference in trial balance.

(a)	Credit sales to Mohan Rs 7,000 were recorded in Purchase Book. However, Mohan’s account was correctly debited.
(b)	Credit purchases from Rohan Rs 9,000 were recorded in sales book. However, Rohan’s account was correctly credited.
(c)	Goods returned to Rakesh Rs 4,000 were recorded in sales return book. However, Rakesh’s account was correctly debited.
(d)	Goods returned from Mahesh Rs 1,000 were recorded through purchases return book. However, Mahesh’s account was correctly credited.
(e)	Goods returned to Naresh Rs 2,000 were recorded through purchases book. However, Naresh’s account was correctly debited.

Trial balance of Madan did not agree and he put the difference to suspense account. He discovered the following errors:

(a)	Sales return book overcast by Rs 800.
(b)	Purchases return to Sahu Rs 2,000 were not posted.
(c)	Goods purchased on credit from Narula Rs 4,000 though taken into stock, but no entry was passed in the books.
(d)	Installation charges on new machinery purchased Rs 500 were debited to sundry expenses account as Rs 50.
(e)	Rent paid for residential accommodation of madam (the proprietor) Rs 1,400 was debited to Rent account as Rs 1,000.

Rectify the errors and prepare suspense account to ascertain the difference in trial balance.

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Office was renovated and renovation charges were Rs. 5000. They were put in purchase book account. It is

The correct option is A Error of principleRenovation charges on office is a capital expenditure therefore, it should be debited to Building a/c and credited to Cash a/c. Here, capital expenditure is recorded a revenue expenditure therefore, it is an error of principle.

The correct option is A Error of principle
Renovation charges on office is a capital expenditure therefore, it should be debited to Building a/c and credited to Cash a/c.
Here, capital expenditure is recorded a revenue expenditure therefore, it is an error of principle.