PRC-1 · Chapter 3 · Question 92 of 100
A business paid Rs. 1,500 for vehicle insurance. The bookkeeper debited the Rent Expense account instead of the Insurance Expense account. What type of error is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Error of commission
Explanation
Since both Rent and Insurance are expense accounts (same class of account), debiting the wrong account within the correct class is classified as an error of commission.
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