PRC-1 · Chapter 3 · Question 72 of 100
A payment of Rs. 400 for telephone charges was incorrectly debited to the electricity account. Both accounts are expense accounts. What type of error is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Error of commission
Explanation
An error of commission happens when an entry is posted to the correct side of the ledger but to the wrong account within the same class (e.g., wrong expense account).
More Ledgers and Trial Balance MCQs
- Q74The Sales account was undercast by Rs. 1,000. By coincidence, the Rent Expense account was also undercast by Rs. 1,000. What type of error…
- Q75A supplier's individual account in the Payables Ledger typically carries a credit balance. If it unexpectedly shows a debit balance, what…
- Q76If a customer's individual account in the Receivables Ledger displays a credit balance, what is the most likely reason?
- Q77In an adjusted trial balance, how is 'Prepaid Rent' classified, and in which column does its balance appear?
- Q78How is 'Unearned Commission Income' treated in a trial balance?