Question 42
Correction of Errors and Suspense AccountA typewriter for office use sold for ₦5,000 was posted to Sales Account. This is an error of
- A.omission
- B.compensation
- C.commission
- D.principle
- E.original entry.
Show the answer and explanation
Answer: D (principle)
Explanation
A fixed asset sale was put in a revenue account: an error of principle.