ICAEW AF · Chapter 7 · Question 1 of 12
Which of the following is an error of principle?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The cost of repairing a delivery van was debited to the motor vehicles cost account
Explanation
An error of principle occurs when a transaction is recorded in the wrong class of account, such as treating revenue expenditure (a repair) as capital expenditure. Posting to the wrong customer is an error of commission, missing an invoice is an error of omission, and a mismatched debit and credit is a transposition error that affects the trial balance.
More Errors, suspense accounts and correcting journals MCQs
- Q3A trial balance has debit balances totalling £248,900 and credit balances totalling £251,370. A suspense account is opened to make the…
- Q4An electricity bill of £370 was paid and debited to the rent account. What journal is needed to correct the error?
- Q5Cash sales of £5,630 were correctly entered in the cash book but credited to the revenue account as £5,360. What journal corrects this…
- Q6A business opened a suspense account when its trial balance did not agree. The following errors were then found, and correcting them…
- Q7A sole trader's draft profit for the year is £64,800. The following matters have not yet been reflected: 1. Closing inventory was…