New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    Purchase of a laptop for office use wrongly debited to

    Purchase Account. It is an error of
    A Omission Correct Answer Incorrect Answer
    B Commission Correct Answer Incorrect Answer
    C Principle Correct Answer Incorrect Answer
    D Misposting Correct Answer Incorrect Answer

    Solution

    When a purchase of a laptop for office use is wrongly debited to the Purchase Account, it is an error of principle. This type of error occurs when a transaction is recorded in the correct class of accounts but under the wrong category within that class. In this case, the error involves a violation of the accounting principle or concept because an expense (office use) has been incorrectly recorded as a purchase.

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