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    Question

    A sale of Rs. 25,000 to A was entered as a sale to B. This is an example of _

    A Error of omission Correct Answer Incorrect Answer
    B Error of commission Correct Answer Incorrect Answer
    C Compensating error Correct Answer Incorrect Answer
    D Error of principle Correct Answer Incorrect Answer

    Solution

    When a sale of Rs. 25,000 to A is incorrectly entered as a sale to B, it is an example of an "Error of commission." Error of commission occurs when a transaction is recorded incorrectly due to mistakes made during the recording process, such as errors in names or accounts.

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