What is meant by errors of principle?
Asked by Topperlearning User | 26th Jul, 2016, 01:33: PM
Generally accepted accounting principles are to be followed to record the accounting entries. When accounting entries are recorded in contravention of accounting principles, it is known as an error of principle. For example, installation charge of Rs.600 for new machinery debited to trading account; this installation charge is a capital expenditure, and hence it should be debited to the machinery account.
Answered by | 26th Jul, 2016, 03:33: PM
- Explain briefly the errors of commission along with example.
- What is meant by a two-sided error? Explain with an example.
- What is meant by a one-sided error? Explain with an example.
- Explain errors of omission with examples in detail.
- Name the errors which do not affect the trail balance with reasons.
- Name any two types of errors which affect the agreement of trial balance with examples.
- What is meant by compensating error? Explain with an example.
- State the type of errors committed in the below transactions: Sale of old furniture worth Rs.5,000 credited to the sales account A payment of Rs.2,300 for salaries was posted twice to the salaries account Goods returned to Rakesh worth Rs.3,200 were not recorded in the books of accounts Wages paid Rs.6,150 were recorded in the cash book as Rs.6,510
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