Which of the following errors is an error of Principle?

R s .600

received from Ganpat has been debited to his account

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Purchase of

R s .2, 000

has been entered in the sales journal

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Repairs to building have been debited to Building Account

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None of these

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Solution

The correct option is C Repairs to building have been debited to Building Account
When the fundamental principle of accounting is violated while preparing the accounts, this is known as error of principle. These errors are made when there’s no proper distinction between capital and revenue items i.e., capital expenditure being treated as revenue expenditure and vice versa.
In the case repairs to building is a revenue expenditure whereas building account refers to capital expenditure spent on acquiring the building. Repairs is revenue expense and is deducted from the profit and loss account of the year.

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Similar questions

Q. Which of the following errors will affect the Trial Balance?
(i) The total of the Sales Book has not been posted to the Sales Account.
(ii) ₹ 1,000 paid as installation charges of a new machine has been debited to Repairs Account.
(iii) Goods costing ₹ 4,000 taken by the proprietor for personal use have been debited to Debtors’ Account.
(iv) ₹ 1,000 paid for repairs to building have been debited to Building Account.

Rectify the following errors.

1) Rent of Rs 700 paid to Ravi has been debited to his personal accout.
2) Sold goods to Ramakant Rs 580 has been entered in the Purchase book as Rs 850
3) Repair to furniture Rs 300 has been debited to furniture account.
4) Total of the sales return book is wrongly taken more by Rs 120.
5) A cheque for Rs 185 issued to Mr. Ashok has been wrongly entered in the cash column of the cash book.

The following errors were found in the book of Rajan & Sons. Give the necessary entries to correct them.

(i) Repairs made were debited to building account Rs. 100.

(ii) Rs. 200 paid for rent, debited to landlord's account.

(iii) Salary Rs. 250 paid to a clerk due to him has been debited to his personal account.

(iv) Rs. 200 received from Rina & co has been wrongly entered as from Reena & Co.

(v) Rs. 1,400 paid in cash for a typewriter was charged to office expenses account.

(vi) Credit sales to Mohan Rs. 7,000 were posted to Karan.

(viii) Credit purchase from Rohan Rs. 9,000 were posted to Gobind.

(viii) Goods returned to Rakesh Rs. 4,000 were posted to Naresh.

(ix) Goods returned from Mahesh Rs. 1,000 were posted to Manish.

(x) Cash sales Rs. 2,000 were posted to commission account.

Pass entries to rectify the following errors :

(i) Purchased good from Ravi Rs. 500 passed through sales book.

(ii) Only Rs. 20 were recorded in Bill Receivable Book instead of Rs. 200.

(iii) A repair to Plant amounting to Rs. 1,000 has been changed to plant & Machine Alc.

(iv) A purchase of gods of Rs. 2,000 has been wrongly debited to Furniture Ale.

Q. Purchase of office furniture of Rs.2,000 has been debited to office expense account. This is an error of .

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