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WAEC Financial Accounting 2011 Question 26

Question 26

Correction of Errors and Suspense Account

A bookkeeper debited Motor Vehicle Account instead of Motor Expenses Account. This is an error of

  1. A.commission
  2. B.original entry
  3. C.complete reversal of entry
  4. D.principle
Show the answer and explanation

Answer: D (principle)

Explanation

Posting a revenue expense to a fixed asset account puts it in the wrong class of account: an error of principle.