[Solved] Which of the following errors is an error of principle?

Q.	Which of the following errors is an error of principle?
A.	Total sales figure was taken as ` 19,373 instead of ` 19,733
B.	A discount of ` 30 allowed to Mr. A was not recorded in the discount allowed account
C.	Legal charges for acquisition of building for ` 500 was entered in the Legal Expenses Account
D.	1,000 received from Mr. X was posted to the credit of Mr. M
Answer» C. Legal charges for acquisition of building for ` 500 was entered in the Legal Expenses Account

622

Do you find this helpful?

View all MCQs in

Financial Accounting

Discussion

No comments yet

Related MCQs

Which of the following statements is/are true? (i) An error in casting the subsidiary books is an error of commission (ii) An error in wrong casting of the sales day book will not affect the personal accounts of debtors (iii) Mistake in transferring the balance of an account to the Trial Balance will not affect the agreement of the Trial Balance (iv) The mistake of treating a liability as an income or vice versa will not affect the agreement of a Trial Balance
Which of the following error is an error of principle
A few errors committed in Ahhiwalia's books of account are given below. State which errors would affect the Trial Balance. (a) Sales of `950 to Ram completely omitted from books of account (b) Purchases of `720 from Shyam entered in the purchases journal as `700 (c) Purchases Journal is overcast by `1,000 (d) Sales returns journal is undercast by `200 (e) Amount paid to Agarwal wrongly posted to the debit to Mittal's account (f) Bank overdraft shown under debit column in the Trial Balance (g) Sales of `500 to Sadiq entered in sales journal as sales to Mushtaq (h) Wages paid for installation of machinery debited to wages account
Which of the following errors is an error of omission?
Which of the following errors affects the agreement of a Trial Balance?
Which of the following errors is not disclosed by a Trial Balance?
On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified. i. Depreciation for 2011-2012- ` 7,000 understated ii. Accrued expenses as at March 31, 2013 - ` 10,000 understated The impact of this on the reported net income for the year ending March 31, 2013 is
Which of these errors affect only one account
Which of these errors affect two or more accounts
Which types of errors will effect net profit