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

    Question

    Sale of Rs.50,000 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

    An error of commission is a type of accounting error that occurs when an incorrect entry is recorded in the accounting records due to an action taken by someone, such as an accountant or bookkeeper. It refers to a situation where an incorrect transaction is recorded, leading to an overstatement or understatement of the accounts affected by the transaction.

    Practice Next

    Relevant for Exams: