ACCA FA · Chapter 10 · Question 2 of 12
Repairs to a factory building were debited to the buildings (non-current asset) account. What type of error is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) An error of principle
Explanation
An error of principle occurs when an item is posted to the wrong type of account - here, revenue expenditure (repairs) treated as capital expenditure. An error of commission involves the correct type of account but the wrong account (for example, the wrong customer). An error of original entry is an incorrect amount recorded in the book of prime entry.
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